Govt, JI negotiating committees to meet over petroleum levy tomorrow

The government and Jamaat-e-Islami (JI) negotiating committees are set to meet in Islamabad on Friday to discuss the abolition of the petroleum levy, as the party prepares to resume nationwide protests over fuel prices, JI Deputy Emir Liaquat Baloch said on Thursday.

Baloch said the meeting, scheduled for October 23, was arranged following a telephone conversation between Planning Minister Ahsan Iqbal and himself.

He added that Prime Minister Shehbaz Sharif was also expected to meet JI Emir Hafiz Naeemur Rehman during the negotiations.

Baloch said the party would also hold nationwide protests on Friday to demand the abolition of the petroleum levy.

“Negotiations and protests will continue side by side. The people must receive relief and economic activity must continue,” he said.

The party has maintained that it will continue its protest campaign until the government agrees to withdraw the levy.

Protests and negotiations

JI first launched sit-ins on August 16 in Karachi, Lahore, Peshawar and Quetta against the petroleum levy, rising fuel prices and inflation. The party accused the government of shifting the burden of its economic policies onto ordinary citizens and demanded the abolition of the levy and a reduction in petrol prices.

The party held a nationwide shutdown strike on September 3, after which the government and JI agreed to form technical committees to examine proposals for reducing the levy and fuel prices. JI subsequently submitted six proposals to the government during the first round of negotiations in Islamabad on September 7.

However, successive rounds of talks failed to produce an agreement, with the government citing economic constraints and pressure under the International Monetary Fund programme, while JI insisted that the levy should be abolished.

On September 20, the party launched a long march towards Islamabad, beginning with a train journey from Karachi. The caravan travelled to Sukkur before continuing towards Multan, where JI chief Hafiz Naeemur Rehman addressed supporters.

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Prime Minister Shehbaz Sharif subsequently telephoned Rehman and asked him to postpone the march, offering to meet the party leadership after returning from abroad to discuss relief for the public.

Rehman said the party had agreed to give the prime minister an opportunity to hold talks but would not abandon its demands. JI suspended the train march at the prime minister’s request, with its workers remaining in Multan pending further negotiations.

The government and JI continued discussions in the following weeks, but the dispute over the levy remained unresolved. The party has since maintained that any meeting between its chief and the prime minister must focus on the complete abolition of the charge.

What is the petroleum levy?

The petroleum levy is a federal charge imposed on petroleum products and forms part of the taxes collected by the government through fuel sales. It is separate from the underlying price of the fuel and contributes to the cost paid by consumers at petrol pumps.

JI argues that the levy adds to the financial burden on households already facing inflation and higher transport costs. The party has linked its demand for the levy’s abolition to its wider campaign for lower fuel prices and relief from the rising cost of living.

The government, meanwhile, has said it is working to provide relief to consumers while managing economic constraints under the IMF programme. The disagreement has persisted despite several rounds of negotiations, with JI demanding the complete withdrawal of the levy rather than a limited relief package.