Pakistan replaces senior petroleum official amid controversy over a gas field award in Khyber Pakhtunkhwa. The Pakistani government has removed a senior petroleum official following a contentious decision to award a majority government-owned gas field in Khyber Pakhtunkhwa (KP) to a private party, sources confirmed to South Asian Desk. The transfer, opposed by the KP government, has raised concerns over transparency and provincial rights.
Why This Matters
The controversy over the KP gas field award underscores tensions between Pakistan’s federal and provincial governments over resource control, a recurring issue in South Asia where equitable distribution of natural resources often fuels political disputes. The outcome could influence energy policy and federal-provincial relations across the region.
Details of the Official’s Removal
On Monday, August 25, 2025, the government, acting on directives from the Prime Minister’s Office, transferred Director General Petroleum Concessions Kashif Ali, a grade 20 officer, to the administration/policy wing of the petroleum division. Imran Ahmad, currently Director General (Oil), has been assigned additional responsibilities to oversee the petroleum concessions role temporarily. Sources indicate the decision was made as a deal to transfer a government-owned gas field in Kohat to a private entity neared finalisation, despite objections from multiple stakeholders.
The petroleum division had approved the transfer through a negotiated sale, bypassing a competitive bidding process. This move drew scrutiny from government bodies and private stakeholders, with critics arguing it violated established protocols.
Objections from Khyber Pakhtunkhwa
Mian Nasim Javed, KP’s director in the Directorate General of Petroleum Concessions, formally objected to the process in a written statement. He argued that the transfer deviated from a Council of Common Interests (CCI) decision, which mandates a competitive process for gas sales to third parties. Javed further noted that the process failed to uphold provincial rights under Article 158 of Pakistan’s Constitution, which prioritises the province’s access to its natural resources.
“The process being adopted is a clear departure from the decision taken by the Council of Common Interests,” Javed wrote, adding that it undermines provincial entitlements.
The lack of a competitive bidding process has sparked allegations of impropriety. Sources familiar with the matter suggest the negotiated sale lacked transparency, prompting calls for greater accountability in resource allocation.
Broader Implications for Pakistan’s Energy Sector
The controversy arrives at a time when Pakistan is grappling with energy shortages and rising demand. The gas field in Kohat, majority-owned by the government, is a significant asset, and its transfer to a private party could impact domestic energy supply and pricing. The petroleum division’s decision to proceed despite objections highlights the challenges of balancing commercial interests with public and provincial priorities.
In a related development, the Oil and Gas Development Company Limited (OGDCL) recently reported progress in Jhal Magsi, where a project produces 14 million standard cubic feet per day of pipeline-quality gas. Such initiatives underscore the importance of transparent resource management to bolster energy security.
Background
Pakistan’s energy sector has long been a focal point of contention between federal and provincial authorities. Article 158 of the Constitution grants provinces priority over natural resources within their boundaries, yet federal policies often dominate resource allocation. The CCI, responsible for resolving such disputes, has advocated for competitive bidding to ensure fairness. Past controversies, such as allegations of mismanagement at the Khyber Pakhtunkhwa Oil and Gas Company Limited (KPOGCL) in 2017, reflect ongoing challenges in the sector.
What’s Next
The government’s next steps in addressing the gas field award controversy will be closely watched. The appointment of Imran Ahmad to oversee petroleum concessions temporarily suggests a transitional phase, but a permanent resolution remains pending. Stakeholders are likely to push for a review of the transfer process to align with CCI guidelines and protect provincial rights. The outcome could set a precedent for future gas field awards in Pakistan, influencing trust in governance and energy policy.
Published in SouthAsianDesk, August 25th, 2025
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