A DRIVING instructor has been charged with a £7million international blackmail scam targeting a Pakistani oil and gas giant.

Nusrat Hussain, 37, of Worston Place, off Preston New Road, Blackburn, is alleged to have used email and telephone threats to gain a payment of one billion rupees, his solicitor said.

Hussain has been suspended as an AA driving instructor pending the outcome of court proceedings, but bosses said he had given notice that he intended to resign.

Basharat Ditta said the allegation against his client, a married man with two children, involved threats that he would use his influence in the Pakistani Government to harm the firm’s interests if his demands were not met.

Hussain was arrested after a complaint was made by his alleged victims, bosses at Dewan Petroleum Ltd, an exploration and production company based in the Pakistani capital of Islamabad.

An investigation has been launched both by the Pakistani authorities and Lancashire police’s force major incident team.

Hussain has been charged that between February 3 and May 18 this year with a view to gain for himself or another or with intent to cause loss to another made an unwarranted demand of one billion Pakistani rupees from Dewan Petroleum Ltd with menaces.

Mr Ditta said his client ‘totally denied’ the allegations against him.

He said: “The charge arises from a threat to the company to use influence with the Pakistani government which would affect the company’s exploration contracts in the Punjab region.

“The complaint is that the threats were made by email and telephone.”

A spokesman for the AA said: “We can confirm he has been an AA instructor. We were not aware of any court appearance or charges but have received an intent to resign from him.

"He has been suspended pending receipt of that resignation and we will be carrying out a more detailed investigation.”

In a hearing at Blackburn Magistrates’ Court Hussain was sent on bail to Preston Crown Court. He did not enter a plea.