Pakistan’s four provinces have pushed back against a federal proposal that would keep them out of day-to-day administration of the oil and gas sector, arguing that shared ownership of hydrocarbons requires a role in their regulation and management.
The federal government has circulated a summary to the Council of Common Interests (CCI) proposing that provinces be excluded from routine administrative matters in the hydrocarbon sector.
The proposal was shared with the finance, planning and law ministries, the Cabinet Division, the attorney general, and all four provincial governments. Their responses show a common concern: oil and gas administration should not become an exclusively federal matter.
Punjab Seeks Provincial Representation In OGRA
Punjab offered partial support for the federal position, saying regulators should operate independently under existing laws and policies.
At the same time, Punjab proposed a specific form of provincial representation. It called for every province to have a seat on the Oil and Gas Regulatory Authority (OGRA), alongside federal members.
Punjab further proposed that if a province objects to a regulatory or administrative decision, the dispute should be referred to the CCI.
Sindh Cites Joint Ownership Under Article 172(3)
Sindh opposed the proposal to exclude provinces from oil and gas administration.
The province referred to Article 172(3) of the Constitution, under which oil and gas located within a province, as well as resources in its adjacent territorial waters, vest jointly and equally in the federation and that province.
Based on this provision, Sindh argued that provinces function as co-licensors in the sector.
It maintained that management of companies operating in the oil and gas sector should therefore involve both the federal and provincial governments rather than being controlled solely by the centre. Sindh also argued that such matters do not necessarily have to be referred to the CCI in every instance.
KP Calls For Equal Provincial Say
Khyber Pakhtunkhwa took a stronger position against excluding provinces from decision-making.
The province acknowledged Parliament’s legislative authority but argued that this power cannot be exercised in a manner inconsistent with the spirit of Article 172(3).
KP maintained that provinces have an equal say in decisions concerning these jointly owned resources. It further argued that the federal government should act as a fiduciary for provincial rights rather than as an absolute owner of oil and gas resources.
Balochistan Defends CCI Role
Balochistan also opposed removing the CCI from administrative matters concerning the sector.
The province cited Articles 154, 156 and 172(3) of the Constitution, read with Entry 2 of the Fourth Schedule, arguing that these provisions establish a stronger supervisory role for the CCI over mineral oil and natural gas.
Balochistan proposed that policy decisions and amendments should be approved through the CCI, while the regulator should subsequently decide individual cases within guidelines established by the council.
CCI To Consider Provincial Role In Oil And Gas
The responses from the four provinces place provincial representation and the role of the CCI at the centre of the debate over Pakistan’s hydrocarbon administration.
The issue extends beyond the structure of the regulator. How provincial representation is established, and how routine regulatory decisions are handled, will determine how the constitutional concept of joint and equal ownership of oil and gas operates in practice.