Pakistan’s government and Jamaat-i-Islami have held a tenth round of talks on fuel costs, with the political party saying the two sides have reached the broad outline of a proposed agreement on relief from the petroleum levy.
The meeting took place in Islamabad on 10 November. The government confirmed that the discussions covered help for consumers, particularly lower-income households, and said there was broad agreement on addressing public concerns through further consultation. Its statement did not endorse every detail described by the party.
Jamaat-i-Islami’s deputy chief, Liaqat Baloch, said the negotiators had worked on the outline of a draft but that a final decision could follow a possible meeting between Prime Minister Shehbaz Sharif and party chief Hafiz Naeemur Rehman. The party has warned that it could resume a postponed march towards Islamabad if the talks do not produce an acceptable outcome.
A signed agreement, a reduction in the levy or a new price cut resulting from the talks had not been confirmed in the statements after the meeting. The outline described by the party is therefore a negotiating step, not a final package.
Proposals for wider relief
Baloch said the party had proposed extending an existing relief scheme to vehicles with engines of up to 1,000cc and to agriculture, including tractors. He also said Jamaat-i-Islami wanted the petroleum levy abolished and sought immediate, visible reductions in fuel prices.
The party described discussions on a possible phased approach to the levy, while maintaining its demand for abolition. Baloch said the government had explained its financial constraints and would present a future course of action. The size, timing and coverage of any new measure remained to be settled.
Deputy Prime Minister and Foreign Minister Ishaq Dar met the party delegation for the follow-up discussions. The government’s account emphasised cooperation and continuing consultation on petroleum prices and public relief. It did not announce that the levy would be removed.
How the existing scheme began
When the government announced its special fuel relief scheme in September, it targeted users of motorcycles, rickshaws and small vehicles with engines of up to 800cc. The government said it was responding to the burden of higher oil prices on the public. The programme was rolled out nationwide on 17 September.
At the time of the announcement, the government said eligible two- and three-wheeled vehicles would receive relief of 100 Pakistani rupees per litre on a monthly quota of 20 litres. Small vehicles of up to 800cc were to receive the same per-litre relief on a quota of 30 litres a month. Those figures describe the scheme as originally announced, not the terms of a new deal.
The question of who qualifies matters to the negotiations. In an October account of the programme, larger cars, diesel vehicles and public transport were outside its coverage. The party’s new proposal would add categories, but the government has not confirmed that those additions have been agreed.
Protest and budget pressures
Jamaat-i-Islami’s campaign against the levy included demonstrations in August and a march towards the capital that began on 20 September. The party postponed the march on 22 September after the prime minister requested time for talks.
On 27 October, Sharif and Rehman met and agreed to form a joint committee, with three representatives from each side. Its task was to develop recommendations for expanding the fuel relief scheme and proposals for a phased reduction in the levy for consideration in the budget.
The financing of relief remains a point of tension. In October, the International Monetary Fund called for the fuel support scheme to be phased out promptly, citing its cost and broad targeting. It said future support in the event of further oil price increases should be limited, temporary and targeted through established social assistance programmes.
Baloch said it was the government’s responsibility to discuss continued relief with the fund. For now, the party’s outline and the government’s more general statement leave the practical terms, funding and future of the proposed march unresolved.
