ISLAMABAD: Pakistan’s multi-billion-dollar oil and gas sector is operating without a functional head after the extended tenure of Oil and Gas Regulatory Authority (Ogra) Chairman Masroor Khan expired on February 19, and eight days have passed without the government notifying a replacement. The leadership vacuum at the top of the regulator has already begun to cast a shadow over critical proceedings in a sector that manages billions of dollars in transactions each year, raising concerns about regulatory continuity and timely decision-making.
A crucial hearing scheduled for March 2 on dollar-based returns for the White Oil Pipeline project from Machike (Faisalabad) to Tarujaba has been postponed due to the incomplete formation of the Ogra authority. The strategically important pipeline project -- backed by Azerbaijan’s state oil company SOCAR, Pakistan State Oil (PSO) and Frontier Works Organisation (FWO) -- is aimed at improving oil transportation efficiency and reducing logistics costs. “The postponement has raised concerns within the industry, with stakeholders warning that such delays send negative signals to both local and foreign investors at a time when regulatory predictability is already under scrutiny,” a top official at the regulatory told The News.
At present, Ogra has a Member Oil, Member Gas and Member Finance. The senior-most member, Member Oil, could have been given additional charge as acting chairman to ensure continuity, but no such notification has been issued. The absence of even an interim arrangement has triggered criticism, particularly because tariff approvals, licensing decisions and major determinations require a fully constituted authority.
When contacted, Federal Minister for Petroleum Ali Pervaiz Malik said the ministry was actively working on the matter and that a summary has been moved for appointment of a new chairman, adding a notification in this regard would be issued soon. However, industry players argue that “soon” offers little comfort in a sector where regulatory clarity and timely decisions are crucial for investment and operational planning.
