Provinces Seek Greater Role in Pakistan’s Oil and Gas Sector
Provincial governments have raised concerns over a federal proposal that could reduce the role of the Council of Common Interests (CCI) in routine administrative matters related to Pakistan’s oil and gas sector.
Punjab has proposed that all four provinces should have representation on the Oil and Gas Regulatory Authority (OGRA) alongside the federal government.
According to Tribune, the federal government has circulated a summary suggesting that the CCI should not be involved in routine administrative matters concerning oil and gas. The proposal has been shared with the finance, planning, law and justice ministries, the Cabinet Division, the Attorney General and all four provincial governments for their feedback.
Punjab Seeks Provincial Representation
Punjab has argued that the constitutional rights of provinces over oil and gas resources should be reflected in the sector’s regulatory and administrative structure.
While supporting the independent functioning of regulatory bodies under existing laws and policies, Punjab has proposed representation for both the federal government and all provincial governments.
The province has also suggested that provincial governments should be able to approach the CCI if they have grievances over regulatory or administrative decisions.
Under this approach, regulatory authorities would continue operating independently while the CCI could provide a forum for resolving disputes between the federal and provincial governments.
Sindh Raises Constitutional Concerns
Sindh has objected to the proposed exclusion of the CCI, referring to Article 172(3) of the Constitution.
The provision states that oil and natural gas resources located within a province or its adjoining territorial waters vest jointly and equally in the federal government and the concerned provincial government.
Based on this constitutional provision, Sindh has maintained that provinces should have an equal role in decisions concerning these resources.
KP Emphasizes Shared Ownership
Khyber Pakhtunkhwa has also raised constitutional concerns over the federal proposal.
The province has argued that Parliament cannot make laws that conflict with constitutional provisions governing the joint ownership of oil and gas resources.
KP further maintained that the federal government should exercise its executive authority in a fiduciary capacity to protect provincial rights rather than treating oil and gas resources as exclusively federal assets.
Balochistan Wants CCI Role Retained
Balochistan has called for policy decisions and amendments relating to the oil and gas sector to be approved through the CCI.
The province proposed that regulatory matters should remain under the relevant regulatory authority, while the rules and broader guidelines should be established through the CCI.
Balochistan has also opposed removing the CCI from administrative matters, citing Articles 154, 156 and 172(3) of the Constitution, as well as Entry 2 of the Fourth Schedule.
According to the provincial government, these constitutional provisions provide the CCI with a wider role in the operational framework governing mineral oil and natural gas.
The province has further maintained that the CCI can deliberate on and issue policy guidelines concerning the distribution and exercise of executive powers between the federal government and provinces in managing these resources.
Provinces Seek Clarity on Oil and Gas Governance
The responses from the provinces highlight differing views over how administrative authority, regulation and constitutional rights should be balanced in Pakistan’s oil and gas sector.
The federal government is currently seeking feedback from the relevant ministries, constitutional offices and provincial governments before proceeding further with the proposal.
