The Fleet Operators Association of Pakistan (FOAP) has urged Prime Minister Shehbaz Sharif to provide immediate relief to the transport and logistics sector, warning that soaring diesel prices and high withholding taxes are placing severe pressure on businesses and threatening supply chain operations nationwide.
In a letter addressed to the prime minister, FOAP Chairman Rana Asim Shakoor said the association represents more than 100 transport service providers involved in trade, commerce and logistics across Pakistan.
The association argued that a sharp increase in high-speed diesel prices had significantly increased operating costs for transport companies.
According to the letter, diesel prices rose from Rs. 281 per litre in March to Rs. 521 per litre by early April, which FOAP described as an extraordinary increase that had fundamentally altered the economics of transport operations.
The association stated that fuel, which historically accounted for around 40 percent of operating expenses, now consumes between 50 percent and 65 percent of gross revenue.
The association also criticized the current 6 percent withholding tax applicable to the transportation and logistics sector.
FOAP claimed that the levy functions as a minimum tax and effectively absorbs more than 60 percent of industry margins, significantly higher than the tax burden faced by many other sectors.
FOAP warned that without government intervention, transport operators may be forced to suspend services, potentially disrupting the national supply chain.
The association called for targeted fuel subsidy mechanisms for transport companies engaged in nationwide logistics operations and requested a reduction in the withholding tax burden.
Get the latest business news, market insights, and economic updates wherever you prefer.
Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.