Pakistan Government and JI Edge Closer to Agreement on Petrol Relief After Tenth Round of Talks

The federal government and Jamaat-e-Islami (JI) have reached a broad understanding on a draft agreement aimed at providing relief to petroleum consumers, following a tenth round of negotiations held in Islamabad, according to statements from both sides.

Speaking after the meeting, JI Deputy Emir Liaquat Baloch said the two sides agreed on the need to widen existing relief measures, with particular attention to lower-income households. He said the government also intends to consult the International Monetary Fund (IMF) on sustaining the relief and on a phased reduction of the petroleum levy. The JI has proposed extending relief to vehicles with engines of up to 1,000cc as well as to the agricultural sector.

Baloch said the government had acknowledged the legitimacy of the party's demand to abolish the petroleum levy, though no immediate removal has been confirmed. He criticised the government for not cutting its own expenditures and for placing the burden of the Federal Board of Revenue's shortfalls on consumers. According to Baloch, the government has begun work on a plan to meet its revenue requirements and will share a framework for gradually reducing the levy after talks with the IMF.

The government also confirmed the discussions. A statement from the Deputy Prime Minister's Office said Deputy Prime Minister and Foreign Minister Ishaq Dar held a follow-up meeting with a JI delegation led by Baloch to discuss petroleum prices and consumer relief, describing the talks as constructive and reiterating the government's commitment to supporting ordinary households amid economic challenges. The meeting was attended by Adviser on Inter-Provincial Coordination Rana Sanaullah, Special Assistant to the Prime Minister Tariq Bajwa, officials from the Petroleum and Finance divisions, and JI representatives including Syed Firasat Shah, Nasrullah Randhawa and Inayatullah Khan.

Further negotiations are expected on Wednesday or Thursday, and a final decision on the proposed agreement could follow a meeting between Prime Minister Shehbaz Sharif and JI chief Hafiz Naeemur Rehman. Baloch said the party would decide whether to resume its planned long march after that meeting, adding that JI remains committed to peaceful political engagement but would withdraw from the talks if the government showed no willingness to move forward.

Baloch also claimed that the party's protests had helped prevent petroleum price increases and secured relief of Rs. 146 per litre on diesel and Rs. 120 per litre on petrol, saying the negotiations had reached the stage of final decisions. Details of the proposed agreement are expected to emerge in the coming days.