Karachi, August 17, 2025 – The Pakistan Chemicals & Dyes Merchants Association (PCDMA) has sounded the alarm over a regulatory dispute that it says could paralyze Pakistan’s industrial supply chain.
The association warned that the Department of Explosives’ enforcement of Dangerous Petroleum License (DPL) regulations on non-petroleum chemicals is threatening to choke imports and disrupt vital industries nationwide.
In a letter addressed to Ali Pervaiz Malik, Minister for Energy (Petroleum Division), PCDMA Chairman Salim Valimuhammad said the Department is wrongly applying petroleum-related laws to chemicals that contain no hydrocarbons and are unrelated to fuel products. He emphasized that the Petroleum Act was originally designed to regulate petrol pumps and petroleum products, not raw materials used in sectors such as textiles, plastics, pharmaceuticals, fertilizers, cosmetics, and leather.
The misapplication, according to the chairman, has already slowed imports to a near halt. Many indenters have stopped placing new orders with overseas suppliers, while local members of PCDMA have suspended shipments out of fear that incoming consignments may be denied customs clearance once the current exemption expires on August 24, 2025. As a result, industries are facing a looming shortage of critical raw materials, with no new supplies in the pipeline.
“If corrective measures are not taken immediately, Pakistan may witness a shutdown in production lines, especially in export-driven industries that rely heavily on uninterrupted chemical supplies,” warned Valimuhammad. He cautioned that such disruptions could lead to missed export deadlines, cancellation of international orders, and a decline in much-needed foreign exchange earnings.
The PCDMA has therefore urged the Petroleum Division to step in without delay, formally exempt non-petroleum and non-hydrocarbon chemicals from DPL regulations, and extend the exemption deadline until a clear classification system is introduced. The association stressed that resolving the issue quickly will help stabilize imports, safeguard industrial operations, and prevent a broader economic crisis.