The Oil Marketing Association of Pakistan (OMAP) has urged Prime Minister Shehbaz Sharif to hold an urgent meeting with industry representatives, warning that mounting financial and operational pressures are threatening the sustainability of Pakistan’s downstream petroleum sector.
In a letter addressed to the prime minister, OMAP Chairman Tariq Wazir Ali said emerging oil marketing companies are facing severe liquidity and working capital constraints due to a growing backlog of unresolved receivables and rising business costs.
The association identified several issues affecting the sector, including delayed settlement of Price Differential Claims (PDCs), unresolved foreign exchange losses, pending sales tax adjustments, outstanding IFEM-related receivables, delayed margin revisions, rising financing costs, growing digitization expenses, and the overall high cost of doing business.
OMAP warned that the accumulation of these unresolved issues is limiting the ability of oil marketing companies to invest in storage infrastructure, logistics networks, retail expansion, and other critical components of Pakistan’s fuel supply chain.
The association also raised concerns about the continued presence of smuggled and undocumented petroleum products in the market. According to OMAP, legitimate companies are being forced to compete with untaxed and unregulated fuel supplies, resulting in revenue losses for both the industry and the government while undermining fair competition.
The latest concerns come at a time when Pakistan’s petroleum sector is already facing uncertainty over potential fiscal measures in the upcoming federal budget. OMAP cautioned against imposing additional taxes on the industry, arguing that increasing fiscal burdens and frequent policy changes discourage long-term investment in a sector that remains vital for the country’s energy security.
The association emphasized that sustainable reforms require meaningful engagement between the government and industry stakeholders. It called for a balanced policy framework that safeguards consumers, supports government revenues, and ensures the commercial viability of oil marketing companies.
OMAP expressed confidence that timely government intervention and constructive dialogue with stakeholders could help resolve the sector’s challenges, strengthen Pakistan’s energy supply chain, and create a more stable and investment-friendly environment for the petroleum industry.