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The long standing delay in extending dangerous petroleum licences has now reached the Special Investment Facilitation Council (SIFC), which will take the final binding decision for the Petroleum Division and the Department of Explosives. The issue has left Karachi’s industrial and commercial importers concerned as thousands of chemical consignments remain stuck due to expired licences.
The matter has been under discussion for nearly a year, yet no resolution has been reached. During a meeting in Karachi, DG Explosives Abdul Ali Khan and FPCCI officials examined the industry’s demand for extending the deadline for acquiring dangerous petroleum licences, which expired on October 23, 2025. FPCCI Senior Vice President Saquib Fayyaz Magoon stressed that chemicals and petrochemicals were being wrongly categorised under petroleum Classes A, B and C, even though most of these materials are non-hydrocarbon and essential raw inputs for industries such as textiles, leather and dyes.
DG Explosives noted that recent amendments to the Petroleum Act 1934 kept the classification standards unchanged, adding that the ministry intended to regulate traders more strictly while showing leniency towards industrial users. He reaffirmed that the issue had been actively discussed since September 2023 and that extensions had been granted repeatedly to avoid industry wide disruption.
Industries also highlighted concerns over delays in testing samples, especially for essential imports like formic acid, as foreign suppliers question Pakistan’s licensing requirements. According to the Pakistan Chemical and Dyes Merchants Association, nearly 80% of affected imports come from commercial importers, while industrial consumers make up only 15–20%. The DG assured that products showing no hydrocarbon content after laboratory testing would be exempted. He added that a two month licence extension proposal had already been forwarded to the government.
The final decision now rests with the SIFC, which is expected to settle the issue amid rising pressure from Pakistan’s manufacturing and export sectors.
