KARACHI: Industries across Pakistan are facing serious production disruptions as thousands of tons of petrochemical containers remain stuck at Karachi Port.
Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh attributed the crisis to amendments made to the Petroleum Act of 1934 in 2023, leaving importers burdened with demurrage fines and excessive detention fees.
In a press conference held at the federation’s headquarters on Saturday, Sheikh urged the government to immediately release the seized raw materials to prevent further economic damage. Highlighting the issue, Sheikh criticized the Petroleum Ministry’s directives from September 2023, which halted the clearance of petrochemical shipments. He stressed that “importers and industries are incurring thousands of dollars in additional fees due to these delays.”
First Vice President of the Oil and Gas Industry Federation, Saqib Fayyad Muqoon, warned of dire consequences for industries, revealing that between 20,000 and 30,000 tons of petrochemicals are still parked at the port, which increases production costs three times. He added: “It takes two months for fresh materials to arrive, and industries are on the brink of closure.”
Magoun also criticized the misinterpretation of the Petroleum Act of 1934, stating that it created unnecessary complications for importers.
Eminent personalities including Aman Paracha, Asif Inam, Nasir Khan, Pakistan Tanners Association President Hamid Arshad, Khalid Tawab, Mian Zahid Hussain and Shakeel Dhingra joined the conference to express their concerns. The leadership of the FPCCI collectively demanded the immediate release of the detained shipments and called for a comprehensive petrochemical import policy, to be drawn up in consultation with stakeholders.
They warned that further delay would deepen the crisis, hurt exports, and push industries closer to closure.