FPCCI highlights challenges for industries due to the Petroleum Act amendment, urging chemical exemptions and regulatory relief.
- SMEs Face Operational Hurdles Due to Stringent Compliance Requirements
- SVP FPCCI Warns of Industrial Raw Material Shortages
- Call to Suspend Clauses B and C in the Petroleum Act
- DG Explosives Pledges Support for Chemical Exemptions
- FPCCI Advocates for Streamlined Licensing and Transportation Rules
- Collaboration with Government Offices Key to Resolution
- Industrial Sector Demands Business-Friendly Regulatory Reforms
- Chemical Importers Seek Clarity on Petrochemical Categories
- FPCCI Pushes for Policy Balance to Protect Exports and Production
Karachi – In a move to address growing concerns within the industrial sector, Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), announced that the organization will advocate for necessary amendments and exemptions in the recently revised Petroleum Act of 1934. These changes, introduced on August 5, 2023, have caused widespread confusion and operational challenges for chemical importers, traders, and industrialists across Pakistan.
During a meeting at the FPCCI Head Office, Mr. Abdul Ali Khan, Director General (DG) of Explosives, engaged with representatives from the chemical industry and trade bodies to discuss these challenges. Highlighting industry complaints, Mr. Sheikh stated that the newly added Clauses A, B, and C in the act—about the categorization and handling of petrochemicals—are riddled with anomalies and discrepancies.
Challenges for SMEs and Industrial Operations
Mr. Sheikh emphasized the implications of the amendment on small and medium enterprises (SMEs), which often lack the infrastructure to comply with stringent regulations. “Thousands of industrial chemicals are used as raw materials in manufacturing, but not all of them require the same handling protocols as inflammable petroleum products,” he said, pointing to the difficulties faced by smaller players in the market.
Adding to the discussion, Saquib Fayyaz Magoon, Senior Vice President (SVP) of FPCCI, expressed concern over the restrictive licensing, storage, and transportation requirements imposed by the revised act. “These unnecessary complexities are creating shortages of industrial raw materials, which could severely affect production and exports,” Mr. Magoon stated. He called for the suspension or withdrawal of Clauses B and C until a comprehensive resolution is achieved, particularly to safeguard industries such as textiles.
Steps Toward Resolution
Despite the challenges, there is a glimmer of hope for the industry. Mr. Magoon appreciated the DG Explosives’ willingness to exempt specific chemicals from Clauses B and C on a case-by-case basis, provided FPCCI supports the request with valid reasons. This approach could alleviate the immediate concerns of industries reliant on critical chemical inputs.
Mr. Abdul Ali Khan reassured attendees that his department is open to facilitating businesses within its permissible limits. He clarified that the department’s focus remains on chemicals containing hydrocarbons, which pose higher risks. “We encourage chemical traders to consolidate their concerns through FPCCI, the apex body, to streamline communication and expedite resolutions,” he said.
Collaboration with Government Offices
The DG Explosives also pledged to assist in securing approvals and exemptions from other government entities, including Customs and Deputy Commissioners, based on FPCCI’s recommendations. However, he advised FPCCI to formally write to these offices to ensure swift action.
A Call for Balance
The FPCCI continues to urge the government to reconsider the sweeping amendments to the Petroleum Act. The organization argues that creating a business-friendly environment is crucial for economic growth, especially as industries face mounting challenges in production and export.
This dialogue between FPCCI, the explosives department, and the broader industrial sector marks a critical step toward resolving regulatory bottlenecks and ensuring the smooth operation of Pakistan’s industries.