Ogra member resigns as govt moves to amend law for civil servant appointments

The Oil and Gas Regulatory Authority (Ogra) is facing uncertainty after Member (Oil) Zainul Abideen Qureshi resigned amid an investigation into oil pricing claims, while the federal government has moved to amend the Ogra law to facilitate the appointment of civil servants to the regulator. 

Dawn reported, citing sources, that Mr Qureshi stepped down after being questioned by the Federal Investigation Agency (FIA) Karachi over payments made to an oil marketing company under price differential claims (PDCs) linked to subsidised oil pricing introduced after the US-Iran war.

The FIA investigation reportedly uncovered misreporting of oil stocks and sales for pricing benefits, leading to around Rs14 billion in disputed claims.

Go Petroleum obtained a stay order from the Sindh High Court against the FIA inquiry. 

Separately, the federal government constituted a committee headed by an additional secretary of the Ministry of Finance and comprising representatives of the Petroleum Division, the Federal Board of Revenue (FBR), the Auditor General and Ogra to review the integrity of PDC payments.

Meanwhile, the government has initiated steps to amend the Ogra Ordinance through a presidential ordinance ahead of the federal budget to provide legal cover for the appointment of civil servants in the regulator.

On April 8, the government appointed Secretary Establishment Nabeel Ahmed Awan as Ogra chairman for a three-month period. The position had remained vacant for about 18 months.

Under the existing Ogra law, the vice chairman assumes charge in the absence of the chairman. Member Gas Shahzad Iqbal had taken over the position before being denotified during arrangements related to oil supplies amid the Gulf conflict.

According to sources, the Cabinet Committee on Legislative Cases has already cleared 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 term. The proposed amendments would also permit the deputation of other civil servants to assist the chairman.