ISLAMABAD: A row between the Ministry of Petroleum and the Transparency International Pakistan (TIP) is getting serious over the latter’s ‘undue interference’ in the ministry’s affairs, it emerged on Wednesday.

In a recent meeting with Petroleum Minister Shahid Khaqan Abbasi, senior officials of Pakistan State Oil (PSO) informed the ministry that the TIP was trying to damage the government’s decision to import oil through the national shipping lines.

The minister was informed about the case filed by the TIP against the agreement between PSO and Pakistan National Shipping Company (PNSC) to import furnace oil, petrol, diesel, etc.

However, the TIP maintains that it is highlighting the flaws in the system.

The NGO in its objection over the agreement said that there had to be an international tendering process by PSO and the contract could not be awarded to one party alone.Talking to Dawn, the petroleum minister criticised TIP for “operating like a pressure group, directing the ministry in dictating terms.”

The agreement was made between the state-owned enterprises in October last year after the Economic Coordination Committee validated the 2001 cabinet decision directing the petroleum sector to import oil through the PNSC.

“The original decision was made after 9/11 and the Afghan invasion by the US and all the international shipping lines were charging exorbitant insurance charges to bring oil to Pakistan,” a PSO official informed Dawn. “There were fears that any group could run Pakistan dry.”

In 2012, the federal government validated the 2001 decision that PSO, Trading Corporation of Pakistan (TCP) and the Steel Mills would import all items through PNSC. Currently, the PNSC has three marine tankers and major chunk of oil is imported through the national carrier.

PSO has the largest amount of cargo among the other two entities. The officials said that the TIP was targeting the oil firm due to business interests.

“They are demanding personal favours and Mr Gilani wanted to have the company-owned petrol pump in DHA,” the PSO official said, referring to TIP adviser Adil Gilani.

However, Mr Gilani expressed annoyance over the allegation. He questioned as to why PSO staff was reluctant to say this in writing.

The TIP has also highlighted that rules have not been followed in the SNGPL’s Liquefied Natural Gas (LNG) Retrofit Project and also over the site establishment of the LNG terminal at Port Qasim.

The NGO has raised technical objection in a written letter to the petroleum minister, but the TIP said that Mr Abbasi was not responding to their objections.

“This is a problem in our system – the PML-N used to say what we are saying today when they were in opposition,” Mr Gilani told Dawn. “We highlight issues, whether it is Nawaz Sharif or Asif Ali Zardari. Rules have to be followed.”

On the other hand, responding to the objections, the minister said that the response had been written to them with the note that they were not the regulatory body to direct the ministry. “The LNG project is well protected under the PPRA rules,” Mr Abbasi said.