Committees representing the federal government and Jamaat-e-Islami (JI) are scheduled to meet on Wednesday to finalise a draft agreement on the proposed gradual abolition of the petroleum levy, according to ARY News.
Citing sources, the broadcaster reported that discussions would focus on a phased withdrawal of the levy and targeted relief measures for motorists and the agricultural sector amid growing public concern over rising fuel prices.
The Jamaat-e-Islami delegation is expected to include Nasrullah Randhawa and Syed Farasat Shah, while the government will be represented by Federal Minister Ahsan Iqbal, Rana Sanaullah and other relevant officials.
Following the committee-level negotiations, the leadership of both sides is expected to review and approve the final draft agreement.
According to sources, the government has agreed in principle to gradually abolish the petroleum levy rather than eliminate it immediately.
The proposed arrangement also includes relief for owners of smaller vehicles, particularly those with engine capacities of up to 800cc and 1,000cc.
Officials have reportedly expressed willingness to extend concessions to the agricultural sector, which has faced increased operating costs because of higher fuel prices.
However, details regarding the scale of the proposed concessions, the timetable for withdrawing the levy and the financial implications for the government have yet to be disclosed.
The negotiations follow an earlier government decision to amend the Petroleum Products (Petroleum Levy and Climate Support Levy) Ordinance, 1961.
Jamaat-e-Islami has repeatedly demanded the abolition of the petroleum levy, arguing that the additional tax burden contributes to rising transport costs, inflation and financial hardship for ordinary consumers.
The party has maintained that reducing fuel-related taxes is necessary to provide meaningful relief to low-income households already struggling with the increasing cost of living.
The proposed agreement could represent a significant development in negotiations between the government and JI, although its implementation will depend on the final terms approved by both sides.
The outcome of Wednesday’s meeting is expected to clarify whether the government will formally commit to a timetable for reducing the levy and introducing targeted relief measures.