Karachi: Mr. Muhammad Yousuf, Ex-Senior Vice Chairman of the Pakistan Coating Association (PCA), and senior member of FPCCI, has sounded the alarm over the severe economic repercussions of the Petroleum (Amendment) Act, 2023. He highlighted that the abrupt enforcement of these amendments, particularly the reclassification of products with flashpoints up to 93°C, has plunged Pakistan’s coatings industry, alongside chemical, pharmaceutical, construction, and textile sectors, into an unprecedented crisis.
The coatings industry, which is heavily reliant 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 exacerbated the situation, leaving manufacturers struggling to sustain operations. This crisis has resulted in production slowdowns, missed export commitments, and imminent risks of industrial shutdowns, painting a grim picture of Pakistan’s already fragile economy.
Mr. Muhammad Yousuf emphasized that delayed clearance of shipments and lengthy licensing processes are compounding the challenges, pushing the manufacturing sector into chaos. He called on the government to immediately grant a grace period of 12 months for shipment clearance, expedite the issuance of “L” and “M” licenses, and reevaluate the expanded product classifications under the Act. He also urged for better regulatory planning, including advance notification 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 safeguard the nation’s industrial well being.