FPCCI Proposes Amendments in Petroleum Act 1934 Atif Ikram Sheikh, President FPCCI

Karachi: Mr. Atif Ikram Sheikh, President FPCCI, has appreciated Senator Musadik
Malik, Federal Petroleum Minister and the Director General of Explosives at Ministry of
Petroleum for responding to the concerns of trade and industry vis-à-vis the definition,
handling, storage and licensing requirements of liquid hydrocarbon, mixed hydrocarbons
and any other material or mixture containing hydrocarbons.

Mr. Atif Ikram Sheikh apprised that FPCCI had officially written to the DG Explosives
after receiving multiple complaints and queries from the sector to seek clarification. While
we acknowledge their reply; nevertheless, we, at FPCCI, feel that the country needs
amendments and updates in the Petroleum Act of 1934 – to create enabling environment
for the sector to flourish.

Mr. Saquib Fayyaz Magoon, SVP FPCCI, proposed that the Petroleum Act 1934 should be
updated to remove irrelevant or obsolete items in it; and, reflect only the necessary
precautionary or safety measures. The petrochemical industry has evolved over the past
many decades and we need to amend our laws accordingly, he added.

Mr. Magoon highlighted that the products contained in Clause A, B and C of the Petroleum
Act 1934 should be dealt separately in terms of licensing, handling, storage and
transportation requirements. The products in Clause B & C should not have as stringent
requirements as in Clause A, he added.

Meanwhile, SVP FPCCI recommended that the amendment incorporated in the Petroleum
Act of 1934 on August 5, 2023, which introduced the above-mentioned clauses, should be
deferred – as it will cause shortage of raw materials for varied industries pertaining to
petrochemical products.