Punjab Seeks All-Province Representation In OGRA

The Punjab government has called for representation of all provinces, along with the federal government, in the Oil and Gas Regulatory Authority (OGRA), as provincial governments have objected to a federal proposal aimed at limiting the Council of Common Interests’ (CCI) involvement in the routine administration of the oil and gas sector.

The federal government has circulated a summary proposing that day-to-day administrative matters related to the hydrocarbon sector should not require the CCI’s involvement. The proposal has been sent to the ministries of finance, planning, development and special initiatives, law and justice, the Cabinet Division, the Attorney General for Pakistan and all four provincial governments for comments.

The provinces have raised concerns over reducing the CCI’s role in oil and gas administration.

Punjab has partially supported the federal proposal, stating that regulatory bodies should function independently under existing laws, rules, regulations and policies. At the same time, it has proposed that all provincial governments and the federal administration should have representation in regulatory bodies.

Punjab further proposed that if a province is dissatisfied with a regulatory or administrative decision, it should be able to refer the matter to the CCI.

Sindh has opposed the proposal, citing Article 172(3) of the Constitution. The provincial government has argued that oil and gas resources located within a province or its adjoining territorial waters vest jointly and equally in the federal government and the respective province.

According to Sindh’s position, this provides provinces with an equal title and the right to dispose of oil and gas alongside the federal government as co-licensors. It proposed that administrative matters concerning entities operating in the oil and gas sector should fall under the jurisdiction of both the federal government and the relevant provincial government without requiring submission to the CCI.

Khyber-Pakhtunkhwa has also emphasised the constitutional role of provinces. It maintained that Parliament’s legislative powers cannot be denied, but argued that those powers cannot be exercised contrary to what it described as the “true letter and spirit” of Article 172(3).

Balochistan, meanwhile, has stated that policy matters and amendments in the oil and gas sector should continue to be formulated with CCI approval. It proposed that regulatory decisions should remain with the relevant regulator, operating under rules and guidelines established at the CCI level.

The Balochistan government argued that excluding the CCI from administrative matters was not tenable in view of Articles 154, 156 and 172(3), read with Entry 2 of the Fourth Schedule of the Constitution. It said these provisions provide the council with a supervisory role in the operational framework governing mineral oil and natural gas.

Balochistan further maintained that Articles 154 and 172(3) place within the CCI’s domain the consideration and formulation of policy guidelines concerning the scope and manner in which executive authority is exercised by the federal and provincial governments in the management and operation of oil and natural gas resources.