Pakistan govt, JI agree on committees to propose fuel levy cuts

Pakistan's federal government and Jamaat-e-Islami (JI) agreed on Thursday to form separate expert committees to examine ways to reduce the petroleum levy.

The move came as the religious party continued nationwide protests over fuel prices.

Who announced the agreement on the petroleum levy committees?

Planning Minister Ahsan Iqbal, Prime Minister's Adviser Rana Sanaullah and JI Emir Hafiz Naeem-ur-Rehman announced the agreement at a news conference in Lahore. It followed talks between government representatives and the party's leadership.

Iqbal said the government would establish an expert panel and had asked the JI to form its own committee, so the two sides could jointly assess practical options for reducing the levy and providing relief to consumers.

What is the current petroleum levy in Pakistan?

"We will happily act upon recommendations put forward by these committees," Iqbal said, adding that the government would also present its position during the discussions. Pakistan currently collects about 114 rupees per liter in taxes and duties on petrol and 100 rupees per liter on diesel, according to the government. Iqbal said both sides had agreed that providing relief to the public was a priority, and that the government would consider the committees' recommendations and act where feasible.

He also said national interests and internal stability would remain central to the talks. The government would not allow any outside force to exploit instability in Pakistan, he added.

Why is Jamaat-e-Islami protesting the petroleum levy?

Rehman said the petroleum levy was among several issues discussed with the government during Thursday's meeting. This came as the JI entered the 19th day of sit-ins against the levy at more than 20 locations across the country. "There is no personal agenda behind the sit-ins," Rehman said, describing them as a response to the financial pressures faced by ordinary citizens and other public concerns.

He argued that petroleum products placed a disproportionate tax burden on lower-income consumers. A motorcycle rider whose income falls below the taxable threshold was effectively paying about 35% in taxes on every liter of petrol, he said.

Who is on the JI's petroleum levy committee?

The JI's expert committee will be headed by senior party leader Liaquat Baloch and include Naveed Ali Baig, Ziaddun Ansari, Nasrullah Randhawa and Farasat Shah, Rehman said. The party's main demand remains the abolition of the petroleum levy and a reduction in fuel prices, he said, while assuring the government that JI would not press for "obstinate demands."

The government delegation also asked the JI to suspend its protests while negotiations continued, Rehman said. The party, however, decided to continue the sit-ins alongside the talks.

When will the committees report back?

Sanaullah said the two committees were expected to reach a workable solution within two weeks, and reiterated that the government would consider acting on their recommendations.

The JI announced on August 16 that it would hold sit-ins in all four provincial capitals to protest the petroleum levy. It also called for a nationwide strike on September 3.