Delay in chairman’s appointment: Ogra likely to face operational issues

ISLAMABAD: The federal government’s plan to amend the Oil and Gas Regulatory Authority (OGRA) Ordinance, 2002 to allow appointment of a chairman from the civil service on an interim basis through a Presidential Ordinance remains uncertain, despite securing formal approval from the Cabinet Committee for Legislative Cases (CCLC), sources told Business Recorder.

According to well-informed sources, the Cabinet Division briefed the CCLC that OGRA was established under the Oil and Gas Regulatory Authority Ordinance, 2002, which clearly stipulates under Section 3(8)(a) that the chairman shall be appointed by the federal government for an initial term of four years, extendable for another similar term.

However, the Cabinet Division highlighted that the process for appointing a regular chairman is lengthy and time-consuming.

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The procedure involves advertisement of the position with at least 15 days for submission of applications, followed by detailed scrutiny of credentials, shortlisting of eligible candidates, comprehensive interviews, and finally submission of a panel to the federal cabinet for final approval.

Sources said that the duration of this process is unpredictable, as it depends on the availability of suitable candidates. In some cases, if none of the applicants meet the required criteria, the entire process has to be repeated, further delaying the appointment.

The Cabinet Division cited a previous instance when the appointment process for OGRA chairman, initiated in 2020, was only completed in 2021 after the position had to be re-advertised due to the selection board’s inability to identify a suitable candidate.

In light of these challenges, the Cabinet Division proposed amendments to Sections 2(ii) and 3(8)(a) of the OGRA Ordinance to ensure continuity in the authority’s functioning. The objective of the proposed changes is to introduce a viable interim arrangement to prevent the regulator from becoming ineffective during periods when the chairman’s position remains vacant.

Under the proposed amendment, the definition of “Chairman” would be expanded to include a civil servant who is assigned additional charge of the post. Similarly, the amendment to Section 3(8)(a) would allow the federal government to assign the additional charge of chairman to a civil servant of BS-21 or above, provided the officer meets the eligibility criteria and is not serving in the Petroleum Division at the time.

The interim arrangement would be valid for a maximum period of three months or until a regular chairman is appointed, whichever occurs earlier.

Sources said the Cabinet Division informed the CCLC that such an arrangement is necessary to avoid administrative paralysis, noting that previous interim measures—such as assigning acting charge to an OGRA member as vice chairman under Section 3(13)—had proven inadequate and left the authority effectively rudderless.

To operationalise these changes, the Cabinet Division submitted a draft bill titled the “Oil and Gas Regulatory Authority (Amendment) Act, 2026,” which had already been vetted by the Law and Justice Division. The federal cabinet had also granted in-principle approval to the draft under the Rules of Business, 1973.

A comparative statement outlining the existing and proposed provisions of the law was also presented before the CCLC to facilitate informed consideration.

During deliberations, members of the CCLC sought clarification on the duration of the proposed interim appointment. The Cabinet Division confirmed that the additional charge would be strictly limited to a maximum of three months.

Given the urgency of ensuring continuity in OGRA’s leadership, the CCLC directed that if parliament is not in session at the time the cabinet ratifies the decision, the proposed legislation should be processed in consultation with the Law and Justice Division and submitted to the President for promulgation as an ordinance under Article 89(1) of the Constitution.

Following detailed discussion, the CCLC approved the proposed amendments to Sections 2 and 3 of the OGRA Ordinance, 2002, endorsing the interim arrangement for appointment of a chairman from the civil service.

Despite this approval, sources indicated that progress on promulgation of the ordinance has been slow, creating uncertainty over the government’s next course of action.

Observers note that any delay in implementing the interim arrangement could impact the functioning of OGRA, a key regulatory body responsible for overseeing Pakistan’s oil and gas sector, including pricing, licensing, and consumer protection.

The proposed amendment is seen as an attempt to ensure institutional continuity and avoid governance gaps in the regulator, particularly at a time when the energy sector faces multiple challenges requiring timely regulatory decisions.

However, the apparent lack of urgency in moving forward with the ordinance has raised questions within policy circles regarding the government’s commitment to addressing administrative bottlenecks in critical regulatory institutions.

Sources maintained that unless the amendment is promulgated in a timely manner, the risk of operational disruption at OGRA may persist, especially in the absence of a regularly appointed chairman.

Copyright Business Recorder, 2026