Mr. Muhammad Yousuf, the former Senior Vice Chairman of the Pakistan Coating Association (PCA) and a senior member of the FPCCI, has raised concerns about the severe economic consequences of the Petroleum (Amendment) Act, 2023. He noted that the sudden implementation of these amendments, especially the reclassification of products with flashpoints up to 93°C, has pushed Pakistan’s coatings industry and the chemical, pharmaceutical, construction, and textile sectors into an unprecedented crisis.

The coatings industry, which heavily relies on hydrocarbons as raw materials, is facing acute shortages due to disrupted supply chains and stalled imports. The rising costs of raw materials have further worsened the situation, leaving manufacturers struggling to maintain their operations. As a result, production has slowed, export commitments have been missed, and there are imminent risks of industrial shutdowns, all of which paint a grim picture of Pakistan’s fragile economy.

Mr Muhammad Yousuf emphasized that delays in shipment clearance and lengthy licensing processes exacerbate the challenges, pushing the manufacturing sector into chaos. He called on the government to immediately grant a 12-month grace period for shipment clearance, expedite the issuance of “L” and “M” licenses, and reevaluate the expanded product classifications under the Act. He also urged better regulatory planning, including advance notifications and reasonable transition periods for future changes.

“The economy is teetering on the edge of collapse, with industries shutting down, exports declining, and unemployment rising. Without urgent intervention, the consequences will be catastrophic for Pakistan’s economic stability,” warned Mr Muhammad Yousuf. The PCA and other stakeholders remain committed to working with the government to resolve this crisis and protect the nation’s industrial well-being.