In a letter to Petroleum Minister Ali Pervaiz Malik, the Overseas Investors Chamber of Commerce and Industry (OICCI) has expressed serious concerns over the recently imposed Petroleum Levy (PL) on Furnace Oil (FO), urging authorities to engage with key stakeholders, including both foreign and local investors.
OICCI Secretary General Abdul Aleem conveyed the chamber’s dismay, representing over 200 major foreign investors in Pakistan, including more than 30 leading energy sector companies. The letter highlighted the imposition of a Rs 82,077 per metric ton PL on FO, which, combined with the existing Climate Support Levy (CSL) of Rs 2,665 per metric ton, is expected to increase FO prices by nearly 80%.
OICCI warned that such a sharp increase in fuel costs could render FO economically unviable for several critical industries, particularly large-scale industrial units. The chamber, while supporting the government’s objectives of revenue generation and environmental sustainability, expressed concerns over the lack of prior consultation with stakeholders before implementing these measures.
OICCI argued that abrupt fiscal changes like these create uncertainty and may undermine industrial competitiveness, harm domestic manufacturing, and reduce tax revenues in the long term. It recommended a more sustained, predictable, and phased approach to policy changes, allowing businesses enough time to plan, evaluate, and adapt to such significant fiscal shifts.
The chamber also called for a clear, consultative framework that would ensure proper engagement with all relevant stakeholders. This, they believe, would help foster business confidence and encourage long-term investment in Pakistan.
Copies of the letter were sent to Finance Minister Senator Muhammad Aurangzeb and Federal Board of Revenue (FBR) Chairman Rashid Mehmood Langrial.
