ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) is facing growing turmoil following the resignation of one of its key members amid investigations into controversial oil pricing claims, while the government moves to amend the regulator’s governing law to facilitate the appointment of civil servants to senior positions.
According to sources, OGRA Member (Oil) Zainul Abideen Qureshi resigned after being questioned by the Federal Investigation Agency (FIA) in Karachi regarding payments made to an oil marketing company (OMC) under Price Differential Claims (PDCs) linked to subsidized fuel pricing introduced during the US-Iran conflict.
The FIA investigation reportedly uncovered irregularities in oil stock and sales reporting, which may have resulted in questionable claims worth approximately Rs14 billion. Although Go Petroleum obtained a stay order from the Sindh High Court against the FIA inquiry, the federal government established a high-level committee comprising representatives from the Ministry of Finance, Petroleum Division, Federal Board of Revenue (FBR), Auditor General’s Office and OGRA to review the legitimacy of PDC payments.
Sources said FIA officials interrogated both Mr. Qureshi and Director General (Oil) Imran Ahmad in separate sessions lasting more than 72 hours. While defending the oil pricing and reconciliation process, Mr. Qureshi submitted his resignation shortly after returning to Islamabad.
Meanwhile, concerns have emerged over the government’s appointment of civil servants to the autonomous regulator. On April 8, Nabeel Ahmed Awan, Secretary Establishment Division, was appointed OGRA Chairman for a three-month term despite legal questions surrounding the move.
The chairman’s position had remained vacant for nearly 18 months. Under the OGRA Ordinance, the vice chairman is expected to assume charge in the absence of a chairman. However, Shahzad Iqbal, Member Gas, who had taken over the role, was later removed from the position by the government during a period of heightened oil supply management following regional tensions in the Gulf.
Despite a legal challenge to Mr. Awan’s appointment in the Islamabad High Court, OGRA has recently inducted two additional civil servants on deputation — Majid Mohsin Panhwar (BS-20) and Imran Ali Sultan (BS-18).
Sources revealed that the Cabinet Committee on Legislative Cases has already approved amendments to the OGRA law, allowing BS-21 and BS-22 officers to be appointed as chairman for a four-year term, extendable for another tenure, while also authorizing the deputation of civil servants to support the regulator’s operations.
The proposed amendments are expected to be introduced through a presidential ordinance ahead of the upcoming budget session, potentially providing legal cover for the recent appointments before the courts take up the matter.
Story by Khaleeq Kiani
