Pakistan’s oil industry is raising red flags over potential conflicts of interest and biased decision-making. The Ministry of Energy’s Petroleum Division is attempting to deploy officials from state-owned enterprises (SOEs) in key government departments, despite a 2020 directive calling for their repatriation due to risks of undermining impartiality ¹.
Concerns Over SOE Dominance
Experts warn that this move could cripple the already struggling energy sector. Officials from SOEs like Oil and Gas Development Company Limited (OGDCL) and Inter State Gas Systems (ISGS) are being placed in technical wings of the Petroleum Division, jeopardizing private sector interests and stalling energy reforms.
Previous Directives Ignored
The Ministry of Energy’s 2020 notification emphasized the need for professionals from OGDCL, Sui Southern Gas Company, ISGS, and Mari Petroleum to return to their parent companies. However, some officials, like an OGDCL employee, remain in influential positions, overseeing exploration licenses, leases, and gas sales.
Foreign Investors Deterred
Pakistan’s regulatory environment, dominated by state-run enterprises, has driven away foreign investors and private companies. Major exploration and production companies have exited the country, frustrated by the system’s bias toward SOEs.
Calls for Change
Experts urge the government to end the practice of embedding SOE officials within ministries and regulatory agencies. The Petroleum Division’s recent decision to hire more SOE officials has raised concerns, with six officers slated for immediately
