OICCI urges authorities to engage with key stakeholders

ISLAMABAD: Expressing serious concerns over imposition of heavy Petroleum Levy (PL), the Overseas Investors Chamber of Commerce and Industry (OICCI) urged the authorities to engage with the key stakeholders on this issue, including both foreign and local investors.

In a letter to Petroleum Minister, Ali Pervaiz Malik, Secretary General OICCI, Abdul Aleem conveyed dismay on behalf OICCI, which represents over 200 of the largest foreign investors in Pakistan, including more than 30 leading companies across the upstream and downstream energy sectors.

“We express our concern over the imposition of a Petroleum Levy (PL) of Rs 82,077 per metric ton on Furnace Oil (FO), effective July 1, 2025. This levy, in addition to the existing Climate Support Levy (CSL) of Rs2,665 per metric ton, is projected to increase the price of FO by nearly 80 percent,” he said adding that such a substantial price hike risks making FO economically unviable for several critical sectors, including large-scale industrial units.

He further contended that OICCI supports the government’s broader objectives of revenue generation and environmental sustainability but it is concerned about the lack of stakeholder consultation prior to the introduction of such significant measures.

“Abrupt fiscal changes of this nature not only create uncertainty but also risk undermining industrial competitiveness, dampening domestic manufacturing, and carries the risk of reduced overall tax revenues for the country,” he continued.

The OICCI has recommended the adoption of a sustained, predictable, and phased policy approach.

He said providing businesses with adequate lead time enables them to plan, evaluate implications, and implement changes in an orderly manner. In contrast, abrupt policy shifts with short compliance windows compel companies to respond reactively, often at the expense of long-term planning and growth.

“A clear, consultative framework that provides adequate time for adaptation, pre and post consultation process essential to promote business confidence and long-term investment. The OICCI urged the relevant authorities to urgently engage with the key stakeholders on this issue, including both foreign and local investors, to ensure that fiscal reforms support the shared objective of industrial growth, competitiveness, and economic stability,” he concluded. The OICCI has also sent the copies of the letter to Finance Minister, Senator Muhammad Aurangzeb and Chairman Federal Board of Revenue (FBR), Rashid Mehmood Langrial.—MUSHTAQ GHUMMAN