Objections raised on Amendment to Petroleum Act 1934

KARACHI: Atif Ikram Sheikh, President FPCCI, has apprised that Abdul Ali Khan, Director General of Explosives, has visited FPCCI Head Office and met with the representatives of chemical importers, traders, industrialists and trade bodies.

“We have been receiving complaints from importers for the past many months that after the amendment carried out in the Petroleum Act 1934 on August 5, 2023 – introducing Clauses A, B and C pertaining to categorizing petrochemicals – there has been numerous anomalies, discrepancies and misunderstandings in the applicable category of chemicals,” he added.

Atif Ikram Sheikh explained that there are thousands of industrial chemicals in the world; which are used as industrial raw materials; and, not all chemicals required to be handled like inflammable petroleum products. The challenges to comply with the new amendment become starker for Small and Medium Enterprises (SMEs) due to their lack of infrastructure and size of their industrial units, he added.

Saquib Fayyaz Magoon, SVP FPCCI, stressed that due to unnecessary and complicated conditionalities in licensing, storage and transportation of petrochemicals, there is a growing concern of shortage of chemicals used industrial raw materials. There will a very negative and debilitating effect on industrial production and exports of the country, he added.

SVP FPCCI said that FPCCI recommends that the introduction of Clause B & C Chemicals through last year’s amendment in Petroleum Act should be withdrawn or suspended – until and unless the issue has been resolved. It is counterproductive for ease of doing business for multiple industries, including textiles, he added.

Magoon expressed his satisfaction that the explosives department is willing to exempt, on a case to case basis on FPCCI’s recommendations, the specific chemicals from Clause B & C on genuine reasons. This will help the industry to resolve the most pressing and urgent issues, he added.

Abdul Ali Khan, DG Explosives, said that he have tried to address the concerns of chemical importers and industrialists. We will facilitate through whatever permissible mechanism and leverage is available at our disposal. He further added that his department is only concerned with the chemicals containing hydrocarbons.

DG Explosives stated that the chemical traders should collectively raise their voice under the umbrella of the apex body, i.e. FPCCI; and, he will ensure that his central and regional offices accommodate the genuine concerns. Additionally, explosives department will also help get necessary approvals or exemptions on the recommendation of FPCCI from other government offices like Deputy Commissioner, Customs, etc. However, he suggested, FPCCI should write to them directly as well, he added.