DPL regulations: Misapplication could lead to industrial closures: PCDMA

KARACHI: The Pakistan Chemicals & Dyes Merchants Association (PCDMA) has issued a strong warning over a crisis that threatens to halt Pakistan’s industrial supply chain, cautioning that misapplication of Dangerous Petroleum License (DPL) regulations could lead to widespread industrial closures.

In a formal letter to Ali Pervaiz Malik, Minister for Energy (Petroleum Division), PCDMA Chairman Salim Valimuhammad raised alarm over the Department of Explosives’ enforcement of DPL requirements on non-petroleum chemicals—materials that do not contain hydrocarbons and therefore, fall outside the scope of the Petroleum Act.

According to the letter, this Act was originally created to regulate petrol pumps and petroleum products, but unfortunately the Department is now placing industrial raw materials under its scope, despite the fact that these chemicals are solely consumed by industries as raw materials for manufacturing in textiles, plastics, leather, pharmaceuticals, fertilizers, cosmetics, and many other sectors.

This misinterpretation has already brought chemical imports to a near standstill. Indenters have stopped issuing orders to protect their overseas suppliers, while PCDMA members have suspended imports due to fears that shipments will be refused customs clearance after the current exemption expires on August 24, 2025. With no goods currently in the import pipeline, industrial buyers are facing acute shortages of essential raw materials.

“If this issue is not resolved urgently, Pakistan could face a complete shutdown of industrial activity, particularly in industries that rely on continuous chemical supplies,” warned Valimuhammad. He also stressed that most of these chemicals are critical for export-oriented industries. Disruptions could trigger production delays, export order cancellations, and a sharp decline in foreign exchange earnings.

Copyright Business Recorder, 2025