ISLAMABAD: The recent 90-day tenure of Riaz Ali as Acting Director General of Petroleum Concessions (DGPC) has stirred significant concern within Pakistan’s energy sector, with insiders warning of a potential leadership crisis.
According to industry sources, initially appointed for a short-term role to fill the position, Ali’s time as acting DGPC has reportedly left the Directorate General of Petroleum Concessions, a key regulator under the Ministry of Energy (Petroleum Division), grappling with administrative disarray, policy inconsistency, staff disillusionment, and eroding stakeholder confidence. Also, 90-day tenure of Riaz Ali as acting Director General of Petroleum Concessions (DGPC) has stirred significant concern within Pakistan’s energy sector, with insiders warning of a potential leadership crisis. Riaz Ali’s tenure, originally intended as a temporary assignment, has left Pakistan’s energy sector facing what sources describe as a ‘severe leadership crisis, said sources.
“Originally a temporary assignment for a 90-day period, Ali’s tenure, according to sources, has left Pakistan’s energy sector facing what they describe as a “severe leadership crisis,” said industry sources.
The sources claimed that despite the expiry of his job tenure, the government has so far not issued an extension letter to Riaz Ali to continue as acting DGPC following the expiration of 90-day tenure. And, the absence of a decision from the government on either extending his role or appointing a successor only compounds uncertainty within the DGPC.
The DGPC’s mandate includes overseeing all upstream exploration and production activities, granting petroleum rights such as exploration licenses, and promoting petroleum exploration by negotiating with both foreign and local companies. It plays a crucial role in driving energy policy forward, managing technical data, and collecting government revenues from dividends, royalties, and other sources. Yet, under Riaz’s leadership, these essential functions have reportedly suffered, with stagnation in key regulatory frameworks and a breakdown in administrative order.
As per sources, under Mr. Riaz’s leadership, the DGPC has encountered unprecedented challenges. Key regulatory frameworks, including critical third-party gas sales regulations, have stagnated. This lack of progress has left private sector stakeholders questioning whether Riaz has the capability or willingness to implement policies crucial to revitalizing the sector. Officers within the DGPC, frustrated by the disarray, are reportedly considering their exits due to the lack of leadership vision and stability.
One of the most controversial moves during Riaz Ali’s time as acting DGPC was his alleged attempt to bring in employees from external companies, a decision criticized by insiders as presenting a potential conflict of interest.
In addition, Riaz’s health—marked by a recent heart attack, reportedly due to the demands of the role—has raised further concerns. While sources acknowledge sympathy for his situation, his health has also added to the uncertainty within DGPC, fueling worries about his ability to handle the role’s requirements effectively.
The industry sources contrasted Riaz’s tenure with that of his predecessor, Kashif Ali, who served as DGPC from January 2022 to August 2024.
One of the most controversial decisions made under Riaz’s watch was Riaz attempted to bring employees from external companies into the DGPC, a decision met with immediate backlash over its apparent conflict of interest.
In addition, Riaz’s personal health crisis—a heart attack reportedly brought on by the intense demands of his role. While there is sympathy for his situation, his health struggles have added to the instability within the DGPC. Managing such a critical regulatory body requires robust leadership, and concerns about his ability to meet the demands of the position are growing.
In contrast, according to sources, Riaz’s predecessor, Kashif Ali, delivered tangible results during his tenure from January 2022 to June 2024. Kashif’s achievements include 34 oil and gas discoveries, which added 376 million cubic feet per day (MMCFD) of indigenous gas and 15,617 barrels of crude oil per day (BOPD) to the national supply. Through continuous engagement with industry stakeholders, Kashif also managed to recover PKR 500 million in outstanding obligations, revived nine exploration blocks, and enabled foreign companies to resume exploration and production operations.
Under Kashif’s leadership, additional gas reserves were identified and are expected to add over 200 MMCFD to Pakistan’s gas system by December 2024. His leadership saw the finalization and approval of long-pending offshore regulations, as well as the initiation of a high-resolution basin study to unlock future hydrocarbon potential. Furthermore, Kashif’s term saw the DGPC collecting Rs. 166 billion in revenues from royalties, training funds, and other fees, including Rs. 8 billion from defaulting companies, marking a robust revenue collection period that highlighted his ability to enhance fiscal discipline within the sector.
With Riaz’s 90-day term now concluded and the government yet to issue a decision on his future or appoint a permanent head, sources argue that the DGPC needs a leader capable of restoring stability, driving key reforms, and rekindling industry confidence. “Pakistan’s energy sector needs steady, effective leadership to get back on track,” emphasized an industry source.
Industry sources also underscored the urgency of appointing a permanent DGPC leader who can implement reforms, attract foreign investment, and boost local production—a critical step in bringing stability back to the country’s energy sector.
Petroleum Minister, secretary petroleum and DGPC Riaz Ali was approached to verify the facts but they did not bother to respond till the filing of this story.
It is worth mentioning that Pakistan’s energy sector requires a leader capable of restoring stability, rebuilding confidence, and implementing policies that will attract foreign investment and drive local production, sources argued. With critical reforms left in limbo and industry stakeholders calling for immediate intervention, there is a growing consensus that a return to steady, effective leadership is necessary to guide Pakistan’s energy sector back on track.
