Karachi: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) is calling for crucial amendments to the Petroleum Act of 1934 to better align with contemporary industrial needs and practices. FPCCI President, Mr. Atif Ikram Sheikh, highlighted the urgency for updates after extensive discussions with federal officials concerning the regulatory framework governing hydrocarbons.

According to Federation of Pakistan Chambers of Commerce and Industry, Mr. Sheikh appreciated the engagement from Senator Musadik Malik, the Federal Petroleum Minister, and the Director General of Explosives at the Ministry of Petroleum, who have addressed industry concerns regarding the definition, handling, storage, and licensing of hydrocarbons. Despite receiving clarifications, FPCCI has identified a need for more substantial reforms to facilitate the growth of the sector.

Mr. Saquib Fayyaz Magoon, Senior Vice President of FPCCI, stressed that the current clauses of the Act are outdated and overly restrictive. He suggested specific modifications to differentiate the regulatory requirements for various classes of petrochemical products. For instance, products listed under Clauses B and C of the Act should not be subjected to the same stringent measures as those in Clause A, which govern more hazardous materials.

Furthermore, Mr. Magoon recommended deferring the amendments introduced on August 5, 2023, which categorized these products into separate clauses. He argued that these changes could potentially lead to shortages of raw materials crucial for various industries within the petrochemical sector.

The FPCCI's push for legislative updates reflects a broader effort to ensure that Pakistan's legal and regulatory frameworks facilitate rather than hinder industrial and economic development.