Key Takeaways
- Provincial governments oppose federal plan to limit their role in oil and gas administration.
- Punjab seeks representation on OGRA alongside federal representatives.
- Provinces argue for constitutional rights in oil and gas sector administration.
Provincial governments in Pakistan have expressed strong opposition to a federal proposal that would limit their involvement in the administration of the oil and gas sector, according to reports from Tribune. The federal government has circulated a summary document proposing that the Council of Common Interests (CCI) play no role in routine administrative matters concerning the oil and gas sector.
Punjab, one of the largest provinces, has taken a leading stance, seeking representation from both the federal government and all provincial governments on the Oil and Gas Regulatory Authority (OGRA). Punjab has also suggested that provincial grievances against regulatory or administrative decisions could be taken to the CCI, ensuring independent operation of regulatory bodies while maintaining a dispute resolution mechanism.
Sindh, another major province, has objected to part of the federal proposal, citing Article 172(3) of the Constitution, which provides for oil and gas resources located within a province or its adjoining territorial waters to vest jointly and equally in the federal government and the relevant province. Sindh argues that provinces have an equal role in decisions concerning these resources.
Khyber Pakhtunkhwa has maintained that Parliament cannot legislate in a manner contrary to the constitutional provisions governing shared ownership of oil and gas resources. The province argues that the federal government should exercise its executive authority as a fiduciary in protecting provincial rights rather than treating the resources as exclusively federal property.
Balochistan has also rejected the federal proposal, citing Articles 154, 156 and 172(3), along with Entry 2 of the Fourth Schedule. Balochistan argues that these constitutional provisions give the CCI a broader supervisory role in the operational framework for mineral oil and natural gas. The province further maintains that the CCI has the authority to deliberate on and issue policy guidelines concerning the division and exercise of executive powers between the federation and provinces in the management of these resources.
The provinces have collectively argued that their constitutional rights over oil and gas resources must be reflected in the sector’s administrative and regulatory framework. Punjab has proposed that provincial grievances against regulatory or administrative decisions could be taken to the CCI, allowing regulators to operate independently while retaining a mechanism for resolving disputes between the federation and provinces.
The federal government has sent the proposal to the finance, planning, law and justice ministries, the Cabinet Division, the Attorney General, and all four provincial governments for their views. The provinces have expressed their objections, emphasizing their constitutional rights and the need for a balanced approach in the administration of oil and gas resources.
