Govt mulls phased reduction in petroleum levy after talks with JI, says Hafiz Naeem

Jamaat-e-Islami (JI) Emir Hafiz Naeemur Rehman said on Wednesday that the federal government is considering a phased reduction in the petroleum levy following 9 to 10 rounds of negotiations with his party.

Addressing a press conference at JI’s headquarters in Mansoora, Lahore, he said the government conveyed its willingness to consider gradually reducing the levy, while JI had also prepared a final draft containing alternative proposals and technical solutions.

He accused the federal government of using its commitments under the International Monetary Fund (IMF) programme to delay a decision on the petroleum levy.

Naeem reiterated that his party had proposed increasing the petroleum levy and import duties on vehicles with engine capacities exceeding 1,800cc, arguing that owners of such vehicles largely belonged to privileged and affluent sections of society.

He urged the federal authorities to expand its petroleum relief scheme from vehicles up to 800cc to those with engine capacities of up to 1,300cc, saying the latter were also used by middle-income and salaried households.

The JI chief said the government was claiming to have provided relief to 15 million people, but the existing scheme excluded a significant section of the middle class.

He also called for including farmers’ tractors and public transport in the relief scheme, saying the government collected around Rs150 billion in petroleum levy every month but provided only Rs26 billion to Rs30 billion in relief.

Naeem said more than 25 million people in Pakistan used motorcycles and argued that the government’s claim of providing relief to 15 million people was insufficient.

He demanded that government officials be barred from using vehicles with engine capacities exceeding 1,300cc and called for reducing privileges and official expenditure to provide relief to ordinary citizens.

JI’s protest campaign

Naeem said the party would continue its protest movement until the petroleum levy was completely abolished. He announced public rallies in Quetta on November 22 and at Minar-e-Pakistan in Lahore on November 29.

The latest announcement comes amid a months-long campaign by JI against the petroleum levy, with the party holding sit-ins and demonstrations across the country and threatening a long march towards Islamabad to press for fuel-price relief.

The party launched a long march from Karachi on September 21 but suspended it two days later following initial contact from Prime Minister Shehbaz Sharif.

The premier subsequently offered negotiations on the petroleum levy, prompting JI to defer its march while keeping its protest campaign alive.

On October 27, PM Shehbaz and Hafiz Naeem agreed to establish a joint committee to work out proposals for expanding the government’s fuel relief scheme and gradually reducing the petroleum levy.

During another round of negotiations on November 3, the government and JI discussed four of the six proposals submitted by the party, including the gradual reduction of the levy, expansion of consumer relief and assistance for the agricultural and transport sectors.

Deputy Prime Minister/Foreign Minister Senator Mohammad Ishaq Dar @MIshaqDar50 held a meeting with a delegation of Jamaat-e-Islami (JI) led by Mr. Liaquat Baloch today to discuss petroleum prices in the country.

The two sides held candid discussions on practical measures to provide relief to the common man, with a specific focus on easing the economic burden on low-income citizens. Both sides agreed to continue their consultations over the coming days to formulate a way forward on energy pricing and public relief.

The DPM/FM reiterated the Government’s commitment to prioritising public welfare and facilitating ordinary citizens amidst global economic challenges. He emphasised that sustained cross-party dialogue remains key to addressing national economic challenges effectively.

The meeting was attended by the Minister for Planning, Development and Special Initiatives, Adviser to PM on Inter-Provincial Coordination, SAPM Tariq Bajwa, Secretary Finance and Special Secretary Petroleum.

— Ministry of Foreign Affairs – Pakistan (@ForeignOfficePk) November 3, 2026

The politico-religious party has maintained that it wants the levy abolished rather than merely reduced and has warned that it could resume its march towards Islamabad if negotiations fail to deliver meaningful relief.