Changes in Petroleum Act opposed

Traders argue not all chemicals need to be handled as inflammable

KARACHI:

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has raised objections to the amendment to the Petroleum Act 1934 and called for excluding the list of chemicals.

In a statement, FPCCI President Atif Ikram Sheikh said, "We have been receiving complaints from importers for many months that after the amendment made to the Petroleum Act 1934 on August 5, 2023 – introducing Clauses A, B and C pertaining to categorising petrochemicals – there have been numerous anomalies, discrepancies and misunderstandings in the applicable category of chemicals."

Sheikh said there were thousands of industrial chemicals in the world being used as industrial raw material and not all chemicals were required to be handled like inflammable petroleum products.

The challenges to comply with the new amendment become starker for small and medium-sized enterprises (SMEs) due to their lack of infrastructure and small size of their industrial units, he said.

Director General of Explosives Abdul Ali Khan visited the FPCCI head office and met representatives of chemical importers, traders, industrialists and trade bodies.

The DG explosives said he had tried to address concerns of chemical importers and industrialists. "We will facilitate whatever permissible mechanism and leverage is available at our disposal," he said.

Khan said his department was only concerned with the chemicals containing hydrocarbons, adding that chemical traders should collectively raise their voice under the FPCCI umbrella and he would ensure that his central and regional offices accommodate their genuine concerns.

The explosives department will also help get necessary approvals or exemptions on the recommendation of the FPCCI from other government offices like the deputy commissioner, Customs, etc. However, the FPCCI should write to them directly as well, he added.

FPCCI Senior Vice President Saquib Fayyaz Magoon said owing to the unnecessary and complicated conditions of licensing, storage and transportation of petrochemicals, there was a growing concern of shortage of chemicals used in industrial raw material.

He stressed that there would be a very negative and debilitating effect on industrial production and exports of the country.