ISLAMABAD: The Petroleum Division failed to meet the November 10 deadline set by the Special Investment Facilitation Council (SIFC) to resolve critical issues faced by Pakistan’s oil refineries, a delay that may hinder progress on plant upgrade agreements outlined in the 2023 Brownfield Refinery Policy, sources revealed.
In a November 3 SIFC working group meeting, oil refineries expressed concerns regarding obstacles such as lack of sales tax exemptions, petroleum product smuggling, and the Oil and Gas Regulatory Authority’s (OGRA) approval process for high-speed diesel (HSD) imports. According to the Oil Companies Advisory Council (OCAC), these issues contribute to an annual foreign exchange loss of $1 billion and impair the ability of refineries to produce Euro-V standard fuels.
The SIFC instructed the Petroleum Division to address these obstacles in collaboration with the Finance Division and the Federal Board of Revenue (FBR), emphasizing the importance of resolving tax issues and supporting OGRA’s initiatives to curb smuggling. The SIFC views these steps as vital to ensuring local refinery viability and advancing the Brownfield Refinery Policy’s modernization goals.
