The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the government to modernize the Petroleum Act of 1934 to foster growth in the petrochemical industry.
KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the government to update the outdated Petroleum Act of 1934. The organization believes that the current legislation hinders the growth of the petrochemical industry and fails to address modern industry standards.
FPCCI President Atif Ikram Sheikh expressed gratitude to Federal Petroleum Minister Musadik Malik and the Director General of Explosives for acknowledging industry concerns regarding the handling, storage, and licensing hydrocarbon products. However, Sheikh emphasized the need for a comprehensive overhaul of the Act to create a more conducive business environment.
Saquib Fayyaz Magoon, Senior Vice President of FPCCI, proposed streamlining the Act by removing obsolete provisions and focusing on essential safety measures. He highlighted the rapid evolution of the petrochemical industry and the need for regulations that align with contemporary practices.
Magoon further suggested a tiered approach to licensing, handling, and storage requirements for different categories of hydrocarbon products. He advocated for less stringent regulations for products with lower risk profiles, such as those in Clauses B and C of the Act.
The FPCCI also recommended delaying the implementation of recent amendments to the Petroleum Act, which could potentially lead to shortages of raw materials for various industries. The organization believes that a more nuanced approach is necessary to ensure the continued growth and development of the petrochemical sector.