The Fleet Operators Association of Pakistan (FOAP) has called on Prime Minister Shehbaz Sharif to provide immediate relief to the transport and logistics sector, warning that rising diesel prices and high withholding taxes are putting severe financial pressure on businesses and risking supply chain disruptions across the country.
In a letter addressed to the prime minister, FOAP Chairman Rana Asim Shakoor stated that the association represents more than 100 transport service providers operating in trade, commerce, and logistics nationwide.
According to the association, the sharp increase in high-speed diesel prices has significantly raised operating costs for transport companies. FOAP claimed diesel prices climbed from Rs. 281 per litre in March to Rs. 521 per litre by early April, creating major challenges for transport operations.
The association said fuel expenses, which traditionally made up around 40 percent of operating costs, now account for between 50 percent and 65 percent of gross revenue.
FOAP also raised concerns over the existing 6 percent withholding tax on the transportation and logistics industry, arguing that it acts as a minimum tax and absorbs a large portion of sector margins.
The association warned that if no corrective measures are introduced, transport operators may suspend services, potentially affecting supply chains nationwide.
FOAP urged the government to introduce targeted fuel subsidy measures for transport companies involved in nationwide logistics and reduce the withholding tax burden.
