JI rejects fuel relief, demands levy abolition

Jamaat-i-Islami (JI) Emir Hafiz Naeemur Rehman has rejected the government’s latest petroleum relief package, saying it does not go far enough to ease the impact of rising fuel prices. He has once again demanded the complete removal of the petroleum levy.

Prime Minister Shehbaz Sharif announced the relief package on Sunday for motorcycle users, auto-rickshaws and owners of vehicles with engines up to 800cc. The government said the measure was intended to provide relief to lower-income citizens facing higher fuel costs due to rising international oil prices.

However, Rehman described the package as inadequate. He made the remarks as JI continues its nationwide campaign against the petroleum levy and negotiates with the government over the issue.

The party has been holding sit-ins in Lahore, Peshawar, Karachi and several other locations since August 16. Rehman said the protests had now entered their 30th day, with demonstrations continuing at around 40 locations across the country.

He also reiterated plans for JI supporters to march towards Islamabad on September 20. The JI chief warned the government against attempting to obstruct the planned movement, saying the authorities would be responsible for any consequences if democratic protests were restricted.

Rehman argued that the petroleum levy could be eliminated through better financial management and changes to monetary policy. He claimed that a three-percentage-point reduction in the interest rate could potentially save the national exchequer around Rs1.7 trillion.

According to him, the government currently collects more than Rs1.56 trillion annually through the petroleum levy. He argued that the savings he proposed could therefore provide enough fiscal space to abolish the levy altogether.

The JI leader also criticised the government’s economic policies, accusing it of protecting banking-sector profits while using inflation control as a justification. He said several recommendations submitted by the party’s committee could help the government save hundreds of billions of rupees.

Rehman also rejected what he described as the government’s argument regarding the State Bank of Pakistan’s autonomy. He said the government should take steps to eliminate interest-based practices from the economy.

He further accused some oil refineries of benefiting unfairly from differences between imported and locally refined petroleum prices. He called for an immediate end to what he described as excessive profits being earned at the expense of consumers.

The JI chief also demanded improvements in refinery capacity, reductions in official privileges and a review of what he termed unfair agreements with independent power producers.

Meanwhile, government-JI negotiations are scheduled to resume on September 15. The two sides have already held two rounds of talks. During the first meeting on September 7, JI presented six major proposals to the government’s negotiating committee.