Govt, JI Form Committees as Petroleum Levy Talks Set for Monday

LAHORE: The federal government and Jamaat-e-Islami have agreed to establish separate committees to examine proposals aimed at easing pressure on households from inflation, petroleum costs and electricity prices. The breakthrough followed talks in Lahore as the party continued nationwide protests against the petroleum levy and rising living costs, with formal negotiations scheduled to begin on Monday.

Federal Planning Minister Ahsan Iqbal said the government had already formed a team of experts and asked Jamaat-e-Islami to nominate its own specialists. The two sides are expected to jointly examine possible relief measures, including proposals related to the petroleum levy. Iqbal said the government would consider workable suggestions and seek implementation where possible to reduce the financial burden on consumers.

The government delegation met the party leadership at Mansoorah in Lahore. Iqbal was accompanied by Prime Minister's Adviser on Political Affairs Rana Sanaullah and Punjab Minister Khawaja Salman Rafique. Jamaat-e-Islami's negotiating side included senior party leaders who presented demands focused on petroleum prices, electricity tariffs and independent power producer agreements.

Jamaat-e-Islami called for withdrawal of the petroleum levy, lower electricity prices and changes to arrangements involving independent power producers. Government representatives acknowledged concerns over the cost of living but said domestic fuel prices also had to be assessed against conditions in international markets. The two sides nevertheless agreed that technical teams should review the figures and identify measures that could realistically be implemented.

Iqbal said the talks were taking place on the instructions of Prime Minister Shehbaz Sharif and stressed that both sides shared the objective of providing relief to the public. He also cited a decline in the policy rate from its earlier peak while arguing that the government continued to face difficult economic constraints. Formal discussions between the two committees are expected to start on Monday.

Rana Sanaullah said officials from the Federal Board of Revenue, Ministry of Finance and Ministry of Petroleum would be involved in assessing possible options. He said the government was prepared to study proposals presented by Jamaat-e-Islami and noted that international price pressures had contributed to rising domestic costs. The discussions are expected to focus on whether fiscal adjustments can be made without creating additional pressure on public finances.

Jamaat-e-Islami Emir Hafiz Naeemur Rehman said the party's sit-ins would continue while negotiations were underway. He said the protests had entered their 19th day and expanded from a small number of locations to around 15. He maintained that the demonstrations were intended to secure relief on everyday expenses rather than serve a personal or electoral objective.

Hafiz Naeem criticised the scale of the petroleum levy and capacity payments in the power sector, arguing that both were adding to pressure on ordinary citizens. He said the party would submit detailed proposals covering cheaper fuel, lower flour prices and reduced electricity tariffs. The next key step will be Monday's formal negotiations, when the two technical teams are expected to assess the financial implications of the proposed measures and determine whether an agreement on immediate relief can be reached.