Oil Licences Waiver Extended to October 23, 2025 – FPCCI Hails Move, Seeks Long-Term Fix

KARACHI / ISLAMABAD, September 14–15, 2025 — In a welcome relief to Pakistan’s industrial and trading sectors, the government has extended the waiver on Dangerous Petroleum Licences (DPL) for import clearances of chemical and petrochemical industrial raw materials. The extension, officially communicated by the Department of Explosives in a letter dated September 10, 2025, will remain in effect until October 23, 2025. 

What is the Waiver About

• The waiver covers import consignments that fall under the petroleum classifications A, B, and C, as per DPL requirements.
• This extension allows pending chemical imports critical for industrial and export activities to be cleared without delays tied to licensing under the explosives regulations.

Industry Reaction and Concerns

• FPCCI (Federation of Pakistan Chambers of Commerce and Industry), led by President Atif Ikram Sheikh, praised the government for the decision. He emphasized that the waiver would ease the burden on industry, especially allowing pending consignments to clear “without further hassle or delay”.
  
• Still, FPCCI officials stressed that this is only a near-term fix. They are calling for the Department of Explosives to work with industry stakeholders to devise a permanent, sustainable solution.
  
• Senior Vice President Saquib Fayyaz Magoon highlighted that many raw materials classified under petroleum are in fact general industrial chemicals, which are already regulated by other bodies. Unnecessary rules around storage, transportation, and licensing are creating risks of shortages and hurting production and export capacity.
  

Proposed Fixes & Government’s Position

• FPCCI Vice President Asif Sakhi has suggested that chemicals used as industrial raw materials should be rationally reclassified so that only those which genuinely pose risks (for example, those containing hydrocarbons or meeting definitions of flammability/inflammation) remain under strict petroleum/explosives regulation.
• DG Explosives, Abdul Ali Khan, has responded positively, assuring the FPCCI that the department will use all permissible mechanisms to facilitate importers. Khan also reiterated that the department’s regulatory concern is specifically around chemicals containing hydrocarbons. 

Implications & Outlook

• For the next ~5 weeks (until October 23, 2025), industries relying on chemical and petrochemical inputs can operate with reduced regulatory friction.
  
• If a long-term resolution is not found, industry stakeholders warn that recurring licensing bottlenecks could result in stalled production, export delays, price escalations, and possibly supply chain disruptions.
  

The shift toward clearer classification of industrial chemicals may also reduce compliance costs, speed up customs/clearance processes, and enhance regulatory clarity. However, implementing such classification reforms will require inter-departmental coordination, possibly new legislative or regulatory rules, and buy-in from all stakeholders.