Cabinet rejects Petroleum Ministry’s proposal to seek OGRA’s control

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The federal cabinet on Wednesday grilled Adviser to Prime Minister Dr Asim Hussain and OGRA Chairman Saeed Ahmed Khan for their personal conflict over acquiring more and more power and rejected a summary of the Petroleum Ministry for placing OGRA under the control of the ministry, Pakistan Today has learnt.

Recently, the chiefs of OGRA and the Petroleum Ministry have constantly been at loggerheads over whether the regulatory authority should fall under its purview, as Dr Asim has time and again sought parliament’s nod for putting OGRA under his control.

Last week, Dr Asim and OGRA Chairman Saeed Ahmad Khan exchanged harsh words during a meeting of a parliamentary committee on petroleum.

In its Wednesday meeting, the cabinet approved the new Haj Policy and agreed in principle to issue licences for drilling of shell gas through competitive open bidding.

A source said the cabinet discussed a summary forwarded by the Petroleum Ministry seeking placement of OGRA under the ministry, claiming that the authority had failed in serving the people at large and that the bosses of the authority were serving the purposes of some “foreign” elements.

“The ministry in its summary also claimed that the OGRA had also always protected the interests of oil companies rather than looking after the interests of the people of Pakistan,” said the source.

The source added that on the other hand, OGRA chairman Saeed Ahmed Khan was of the view that the authority could not be placed under the ministry and any such step would be counterproductive and violation of OGRA laws.

“Moreover, if the authority is placed under the ministry, it would undermine its role. The OGRA chief described it as part of a campaign to punish the regulator for its refusal to condone inefficiency and losses of gas utilities,” the source added.

He said the cabinet members disapproved the proposal submitted by Dr Asim Hussain and said the authority would not be placed under the ministry.

“Some cabinet members even challenged the integrity of Dr Asim and termed the move to grab more power misuse of authority,” the source said, adding that Dr Asim had to defend his proposal.

A majority of cabinet members advised Dr Asim to improve affairs of the ministry where things were deteriorating and the country was facing shortage of oil and gas reserves.

Briefing media on cabinet’s decisions later, Information Minister Qamar Zaman Kaira expressed the confidence that exploration of shell gas would help meet the country’s growing gas needs.

Kaira said the details of the new Haj Policy would be announced by the minister for religious affairs today (Thursday). He‚ however‚ said the prime minister asked ministries of religious affairs and defence to sort out the issue of Haj fares through consultations.

The cabinet also asked the ministerial committee‚ already working under the chairmanship of Law Minister Farooq Naik‚ to consult OGRA‚ gas companies and other stakeholders to sort out problems being faced by the companies and consumers.

The prime minister directed the committee to resolve the issues without burdening the consumer further.

The cabinet also approved the report presented by the Water Sector Task Force.

It approved conversion of Karachi-Hyderabad Super Highway into six-lane motorway and the contract would be given to FWO on single tender basis.

The prime minister gave instructions for allocation of initial funds to ensure immediate beginning of the work on the project.

Kaira said the prime minister offered condolences to the families of the martyrs of the Quetta bombing.

“The fight against terrorism is a national issue and national approach is required for its resolution. Support and strength of all political leadership of the country is required for addressing the grave situation. Pakistan continues to confront courageously the menace of terrorism and we will continue to fight it until it is wiped out,” he added.

“A wrong impression is being created by the enemies of democracy that the government has done nothing during the last five years. In fact, the government has taken all possible measures for improvement in the law and order and economy despite several constraints. My recent official visit to UK was in the direction to interact with British government on matters of mutual interest and also to meet our Pakistani community settled in the UK,” he added.