LAHORE: The Oil Marketing Association of Pakistan (OMAP) has urged the government of Pakistan to address the growing financial and operational challenges faced by the emerging Oil Marketing Companies (OMCs).
The association stated that timely support is essential for ensuring energy security, sustaining investment, and maintaining a stable fuel supply chain. In a representation submitted to Prime Minister Muhammad Shehbaz Sharif, the OMAP appreciated the government’s management of petroleum prices through the PDC mechanism.
The OMAP stated that it represents the emerging OMCs operating more than 3,200 retail outlets across the country and providing employment to over 65,000 people. The association noted that these companies have invested nearly rupees 150 billion over the past decade and contributed around 50 percent of the country’s oil storage capacity and supporting tax revenues also.
The association highlighted that delayed reimbursement of nearly rupees110 billion under the PDC mechanism has created serious liquidity challenges for companies.
The association said unresolved margin revisions, Rs 56 billion in pending sales tax adjustments, and Rs 26 billion in foreign exchange losses have further increased financial pressure on the sector.
The OMAP also raised concerns regarding supply practices, banking restrictions, digitization requirements, and policy inconsistencies, which are affecting fair competition and smooth business operations. The association emphasized that a stable, transparent, and investment-friendly business environment is necessary to strengthen investor confidence and attract future foreign direct investment.
The OMAP requested an early meeting with the prime minister to discuss practical solutions for the sector.
Chairman of OMAP Tariq Wazir Ali said the association remains ready to work closely with all stakeholders for the long-term development of Pakistan’s petroleum sector.
Copyright Business Recorder, 2026