ISLAMABAD: The Petroleum Division is grappling with a deepening crisis as internal discord over gas allocation policies and other pressing issues escalates. A rift between Petroleum Minister Musadik Malik and senior officials has resulted in the resignation of Additional Secretary Petroleum Zafar Abbas, further complicating matters.
The tensions arose following a decision by a high-level committee led by Deputy Prime Minister Ishaq Dar to allocate 35% of gas to third parties with a cap of 100 million cubic feet per day (MMscfd). This policy was lauded by the oil and gas industry as a progressive step toward market liberalization, enhancing cash flows, reducing circular debt, and ensuring competitive pricing for exploration companies.
However, sources reveal that the petroleum minister opposed the policy’s implementation, citing distrust in Secretary Petroleum Momin Agha and Additional Secretary Zafar Abbas. The minister reportedly insisted on their removal before proceeding with the policy.
Amid this turmoil, Zafar Abbas applied for a 100-day leave and requested reassignment, citing an unworkable environment under the minister’s leadership. Abbas had been instrumental in drafting the framework for auctioning gas discoveries—a critical component of the government’s energy reforms aimed at attracting investment and addressing Pakistan’s energy crisis.
The ongoing discord has delayed the privatization initiative for future gas discoveries, essential for improving sector efficiency and reducing financial losses. Former DGPC Kashif Ali, who contributed to the policy draft, was also reassigned under similar circumstances, further destabilizing the division.
Prime Minister Shehbaz Sharif recently chaired a high-level meeting to address the issue, with officials defending their positions against allegations of bypassing the minister in key decisions. Despite the PM expressing satisfaction with their explanations, the working relationship within the division remains strained.
The absence of senior officials during upcoming policy reviews by the Executive Committee of the National Economic Council (ECNEC) raises concerns about the continuity of critical reforms. The petroleum minister, however, dismissed reports of internal conflict as “baseless” and attributed the reassignment to routine performance management following an audit.
The division’s turmoil underscores the urgent need for improved coordination and trust to ensure the implementation of vital reforms critical to Pakistan’s energy future.
Story by Zafar Bhutta
