ECNEC is scheduled to meet on Monday to take decision on framework for sale of 35% future gas discoveries to private sector
Staff Report
ISLAMABAD:
A deepening crisis in the Petroleum Division has been threatening critical energy reforms as Additional Secretary Zafar Abbas steps down following alleged disagreements with Petroleum Minister Musadik Malik, raising concerns over leadership and reform continuity.
According to sources in the petroleum industry, this internal discord, driven by allegations of ministerial overreach and a breakdown in trust, can jeopardize the implementation of landmark energy policies, including the sale of 35% of future gas discoveries to private companies.
The Additional Secretary, a central figure in drafting the implementation framework for the sale of 35percent of future gas discoveries to the private companies, has requested reassignment and taken extended leave, citing inappropriate behavior by the minister. Sources claimed this move has reflected a toxic working environment within the division, exacerbated by power struggles and political maneuvering.
Key Energy Reforms in Limbo
The framework for sale of 35% of gas production of E&P companies to third parties, developed as part of a directive from the Council of Common Interests (CCI), aims to inject private investment into Pakistan’s energy sector, address circular debt, and attract exploration and production (E&P) activities. However, the absence of Zafar Abbas—an architect of this initiative—has cast doubts on the timely execution of this critical policy.
Despite the Prime Minister expressing satisfaction with the explanations provided by Petroleum Division officials regarding recent allegations, sources alleged that a deliberate effort by the Petroleum Minister and his allies is delaying reforms. This includes reported opposition to policies that would decentralize decision-making and reduce inefficiencies.
Political Intrigues and Bureaucratic Fallout
Further complicating the situation, Syed Tariq Fatemi, the Special Assistant to the Prime Minister on Foreign Affairs, has allegedly joined forces with Musadik Malik to target Petroleum Division officials. A letter sent to the Prime Minister by Fatemi allegedly criticized the performance of senior bureaucrats, and raised concerns about their commitment to implementing reforms.
Deputy Prime Minister Ishaq Dar, a vocal supporter of the CCI’s decision pertain to 35% this policy, is allegedly at odds with both Fatemi and Malik over the handling of energy policies. Insiders alleged that Fatemi and Malik have used their influence to create distractions, effectively delaying the implementation of privatization reforms critical to the nation’s energy future.
Eroding Morale and Institutional Trust
This conflict has further eroded morale within the Petroleum Division. Frequent reshuffling of senior officials, including the earlier transfer of former Director General Petroleum Concessions (DGPC) Kashif Ali, has left the department in disarray. Senior officials described an environment of distrust, fueled by allegations of micromanagement and inconsistent leadership from the Petroleum Minister.
The absence of both Abbas and Kashif Ali from the upcoming Executive Committee of the National Economic Council (ECNEC) meeting scheduled to be held on Monday under Deputy Prime Minister Ishaq Dar has been posing significant risks to the continuity of leadership at a time when decisions on pivotal energy reforms are imminent.
The Bigger Picture: Pakistan’s Energy Crisis
The ongoing turmoil within the Petroleum Division comes at a critical juncture for Pakistan’s energy sector, which is grappling with declining domestic production, mounting circular debt, and a growing reliance on imported fuels. Experts warn that the delay in implementing privatization policies could exacerbate these challenges, deterring much-needed private investment and stalling efforts to modernize the sector.
The sidelining of Zafar Abbas, recognized for his efforts to reduce reliance on imported fuels and improve local E&P operations, signals a troubling shift away from technocratic leadership toward politically motivated decision-making. This approach, critics argue, risks undermining reforms essential to Pakistan’s energy security.
Urgent Need for Stability and Reform
The Petroleum Division’s challenges underscore the urgent need for cohesive leadership and a focus on policy continuity. As the nation faces an acute energy crisis, resolving internal conflicts and ensuring a stable environment for reform implementation should be a top priority.
