Does your gas block have the setscrew that locks the front sight in position? Only Inch-gas blocks do. If it doesn't have the locking setscrew, the gas block is Metric-pattern.
Identification is very important of Inch-pattern and Metric-pattern gas blocks. You can swap Inch gas blocks on Inch barrels; ditto for Metric. You cannot mix the two because the gas ports are drilled differently -- Inch are drilled on an angle and Metric are drilled vertically.
If you've positively identified your rear sight as Inch and your gas block as Inch, then do as follows. Loosen the front sight setscrew and turn the front sight DOWN as far as it will go (which raises the bullet strike on the target). If you're still shooting low, you can carefully shorten the front sight length. This will allow the sight to go down further in the gas block and bring the point of impact (POI) up.
Before this, do your zeroing at 25 yards. When I'm messing around with rough sighting-in a rifle, I do it with a laser boresight. These come in either the chamber insert variety or one that's inserted on an expanding arbor into the bore of the rifle. The laser boresight will cost between $50 and $100 depending on what kind you get, but you will save money because you won't be wasting expensive ammo. The price of 7.62 NATO has gone through the roof in the last several years, so a laser boresight just makes good economic sense.
Back to sighting-in. I assume the following conditions when you use the boresight: (1) sight from 25 yards, (2) sight-in from a bench, and (3) sight-in using supporting sandbags or a rifle rest. Put the laser dot on the center of the zeroing target crosshair and note the position of the dot relative to the iron sights. Make the necessary adjustments to windage first so that the vertical centerline of the bore and rear/front sight are the same.
Now ajust the front sight so that it's about an inch or two above the crosshair intersection and laser dot. Remove the boresight. Fire three rounds at 25 yards to see where the rifle is shooting. If you get a good group, go to 100 yards and check the zero. Do not zero at 50 yards. If you do, your sights will really be off -- start at 25 and go to 100. If you get consistent bullseyes at 100 yards with this sight setting, raise the POI an inch or two for a 200 yard battle sight setting.
Here's a 100/200 meter benchrest type target.