JI’s Naeem warns of Islamabad protest if government refuses to scrap petroleum levy

KARACHI: Jamaat-e-Islami (JI) chief Hafiz Naeem-ur-Rehman has warned that the party will call for an Islamabad protest if the government fails to show seriousness in ongoing talks and refuses to scrap the petroleum levy.

Speaking at a press conference in Karachi, Naeem said the JI would announce the Islamabad protest if the government remained “adamant” and did not move towards ending the levy.

“If the government does not show seriousness in negotiations and remains adamant and does not move towards ending the petroleum levy, then we will give the call for Islamabad,” Naeem said, adding that he would announce the call at a sit-in planned for September 10.

The JI chief said the party had presented the government with a detailed proposal containing six or seven key points on how the petroleum levy could be eliminated.

Naeem criticised the government for increasing petroleum prices while negotiations were underway, saying it should have avoided raising prices during what he described as a crisis across the country and instead reduced the burden through taxes.

The JI has been leading protests across Pakistan since mid-August, demanding a reduction in the levy following substantial increases in petrol and diesel prices linked to energy supply disruptions in the Strait of Hormuz amid the ongoing United States-Iran conflict.

The government team involved in the talks includes Planning Minister Ahsan Iqbal, Prime Minister’s Adviser on Political Affairs Rana Sanaullah and Punjab Minister of Specialized Health Khawaja Salman Rafique. The team held talks with Naeem and other JI leaders earlier this month in Lahore.

JI reaches out to opposition parties, including PTI

Naeem also said he had contacted opposition parties to build broader support for the demand. He said he had spoken with Barrister Gohar and was seeking support from other political parties as well.

He welcomed a resolution passed by the Sindh Assembly on the issue and urged the provincial government to send it to the federal government with strong comments. Despite the JI’s differences with the Pakistan Peoples Party over its governance, Naeem said the party should engage with the federal government on the petroleum levy to secure relief for the public.

He said the issue should not be treated as belonging to a single political party but as a matter concerning millions of people across Pakistan.

Naeem also criticised the government’s handling of the energy sector, particularly payments to independent power producers (IPPs). He said recent figures showed that energy costs had fallen while capacity payments had increased, arguing that IPPs were receiving large payments for electricity that was not being generated.

According to Naeem, Rs1.7 trillion to Rs1.8 trillion had been paid to IPPs. He linked previous negotiations with IPPs to the JI’s protest movement, arguing that the episode showed that public protests could produce results.

He said the JI would continue consulting its teams and organisational units across Pakistan as it prepared to intensify its campaign.

Naeem said the petroleum levy was placing a particularly heavy burden on low-income and middle-class households. He warned that falling savings and rising household debt could weaken wider economic activity, while families were also struggling to meet education costs as they turned to private institutions because of concerns over the quality of public education.

The government has imposed the petroleum levy as part of its commitments under its ongoing loan programmes with the International Monetary Fund. Petrol currently carries Rs114 per litre in taxes, including an Rs80 per litre levy, while diesel carries Rs100 per litre in taxes and duties, including a Rs77.28 per litre levy. An additional Rs5 per litre climate support charge applies to both fuels.