Jamaat-e-Islami vows intensified protest against petroleum levy and IPPs
JI chief Hafiz Naeemur Rehman announced plans to expand protests over the petroleum levy, independent power producers and inflation, signalling heightened political risk for oil‑gas and power sectors.
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Negative · Do not buy
Oil & Gas and Power sectors face heightened political risk; avoid related stocks.
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Desk call: Do not buy · Negatively affected
- Oil & GasNegatively affected
- PowerNegatively affected
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Sectors: Oil & Gas, Power — Negative · Do not buy. PSX tickers: OGDC, HUBC. Oil & Gas and Power sectors face heightened political risk; avoid related stocks.
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Open on Business Recorder## Protest escalation announced
Jamaat‑e‑Islami (JI) chief Hafiz Naeemur Rehman told a press conference at Idara Noor‑e‑Haq that the party will step up its campaign against the petroleum levy, payments to independent power producers (IPPs) and rising inflation following a nationwide shutdown strike held on September 3.
## Possible actions
Rehman said the party is weighing a long march to Islamabad, sit‑ins in the capital and Rawalpindi, and a broader rollout of protests across the country. Current sit‑ins have reached 18 days in the four provincial capitals, with additional protests in Peshawar, Hyderabad and remote districts such as Chitral.
## Grievances
The JI leader accused the government of collecting roughly Rs 130 per litre through the petroleum levy and other taxes, and of paying more than Rs 1.7 trillion to certain IPPs for electricity that was never generated. He claimed some IPP owners have offshore registrations and evade corporate tax.
## Economic claims
Rehman argued the campaign has saved billions for the exchequer and helped lower electricity tariffs by Rs 16 per unit. He called for the abolition of the petroleum levy and the cancellation of what he termed “anti‑people” agreements with IPPs.
## Political context
While urging all political forces to join the movement, Rehman also criticised PPP and MQM‑P leaders over communal politics in Karachi. The protest narrative is framed as a fight against unfair tax burdens on low‑ and middle‑income citizens, especially motor‑bike owners.
## Potential market implications
The heightened political pressure on the petroleum levy and IPP contracts could create regulatory uncertainty for listed oil‑and‑gas firms and power generators, possibly affecting earnings and investor sentiment.