Restructuring of regulatory bodies soon

The federal government has decided to study restructuring regulatory bodies, after concerns that some exercise powers from inside ministries, according to The Express Tribune. The government says the blurred line between ministries and regulators raises doubts about independence. The study will examine how federal regulators can be made more effective and accountable without weakening their independence.

The Oil and Gas Regulatory Authority (Ogra) and the National Electric Power Regulatory Authority (Nepra) face scrutiny for reportedly following Ministry of Energy directives. Nepra raised K-Electric's multi-year tariff but later reversed that decision after a motion from the Power Division. Capacity charges, which Nepra allowed as an incentive for power plant builders, cost consumers more than Rs2 trillion annually. Ogra has faced criticism over oil marketing and LPG licences issued despite gaps in storage and supplies.

Sources believe that federal agencies, developed across seven decades, now need a review. The study will ask how they were designed, how well they performed and whether their goals were achieved, before making recommendations on shortcomings in law, institutions, finances, capacity and the wider system. The bodies fall into three groups: sector and independent regulators, technical and professional services, and hybrid or borderline bodies.