Pakistan’s Oil Refineries Undergo Major Plant Upgrades

Federal Minister for Finance and Senator Muhammad Aurangzeb met with a delegation of Chief Executive Officers from Pakistan’s leading oil refineries at the Finance Division. The refinery heads shared their investment plans, which involve multi-billion-dollar upgrades aimed at boosting local production of petrol and diesel. These upgrades are expected to significantly reduce the country’s dependence on imported refined fuels, potentially saving nearly $1 billion annually in foreign exchange.

The delegation also brought attention to the recent shift in the sales tax regime on petroleum products—from zero-rated to exempt supplies. They noted that this change has led to a rise in both operational and capital costs, posing challenges to the financial feasibility of their planned projects.

Senator Aurangzeb welcomed the delegation and acknowledged the critical role of the refining sector in enhancing energy security and reducing the national import bill. He assured the CEOs that their concerns, particularly those regarding the sales tax structure, would be carefully reviewed. The minister emphasized the government’s commitment to ensuring a supportive policy environment that enables continued investment and modernization in the refining industry.