Mr. Atif Ikram Sheikh, President of FPCCI, has apprised that Mr. Abdul Ali Khan, Director General of Explosives, has visited FPCCI Head Office and met with the representatives of chemical importers, traders, industrialists and trade bodies. We have been receiving complaints from importers for the past many months that after the amendment carried out in the Petroleum Act 1934 on August 5, 2023 – introducing Clauses A, B and C about categorizing petrochemicals – there have been numerous anomalies, discrepancies and misunderstandings in the applicable category of chemicals, he added.
Mr. Atif Ikram Sheikh explained that thousands of industrial chemicals are used as industrial raw materials worldwide, and not all chemicals require handling, like inflammable petroleum products. He added that the challenges to comply with the new amendment become starker for small and medium enterprises (SMEs) due to their lack of infrastructure and the size of their industrial units.
Mr. Saquib Fayyaz Magoon, SVP FPCCI, stressed that due to unnecessary and complicated conditionalities in licensing, storage, and transportation of petrochemicals, there is a growing concern of a shortage of chemicals used as industrial raw materials. He added that this shortage will have a very negative and debilitating effect on the country’s industrial production and exports.
SVP FPCCI said that FPCCI recommends that the introduction of Clause B & C Chemicals through last year’s amendment in the Petroleum Act be withdrawn or suspended until and unless the issue has been resolved. He added that it is counterproductive for the ease of doing business for multiple industries, including textiles.
Mr. Magoon expressed his satisfaction that the explosives department is willing to exempt, on a case-to-case basis, the specific chemicals from Clause B & C for genuine reasons, per FPCCI’s recommendations. This will help the industry resolve the most pressing and urgent issues, he added.
Mr Abdul Ali Khan, DG Explosives, said that he had visited the FPCCI Head Office and tried to address the concerns of chemical importers and industrialists. We will facilitate through whatever permissible mechanism and leverage is available at our disposal. He further added that his department is only concerned with chemicals containing hydrocarbons.
DG Explosives stated that chemical traders should collectively raise their voices under the umbrella of the apex body, i.e., FPCCI, and he will ensure that his central and regional offices accommodate genuine concerns. Additionally, the explosives department will help get necessary approvals or exemptions on the recommendation of FPCCI from other government offices like the Deputy Commissioner, Customs, etc. However, he added that FPCCI should write to them directly as well.
