ISLAMABAD: The Special Investment Facilitation Council (SIFC) has set a November 10 deadline for the Petroleum Division to resolve critical issues facing Pakistan’s oil refineries, hindering agreements on plant upgrades under the Brownfield Refinery Policy 2023.
According to sources, a recent meeting at the Prime Minister’s Office, led by a working group on downstream policy issues under SIFC, emphasized adherence to regulatory guidelines on fuel import and stock usage. SIFC directed the Oil and Gas Regulatory Authority (OGRA) to confirm compliance with standard operating procedures (SOPs) for import approvals and stock utilization.
Oil Companies Advisory Council (OCAC) highlighted several challenges, including sales tax exemptions, fuel smuggling, and high-speed diesel imports. These issues, it said, are costing Pakistan around $1 billion annually in foreign exchange losses and affecting the local production of Euro-V fuels.
SIFC has directed swift actions, including resolving sales tax exemptions by November 10 with input from the Finance Division and FBR, and implementing a coordinated campaign to curb fuel smuggling with enhanced OGRA-led inspections. A plan to eliminate illegal petroleum outlets is expected from the Petroleum Division and stakeholders by November 7, aiming to remove substandard fuel from the market.
Story by Zafar Bhutta
