Oil refineries urged to swiftly upgrade plants

According to The Express Tribune, the government has urged oil refineries to move faster on their modernisation projects under a revised brownfield refining policy. The overall completion period for these upgrades has been cut to six years, while refineries finishing within three years would be eligible for a further 0.5%. Petroleum Minister Ali Pervaiz Malik conveyed the cabinet's decision to refinery heads and asked them to sign upgrade agreements at the earliest.

The window to sign upgrade agreements has been shortened from 90 days to 60 days, and refineries that fail to sign or carry out signed agreements will face penalties. Disputes will be settled through Pakistani institutions under Pakistani law. Signing and implementation of upgrade projects will now rest with the Petroleum Division instead of Ogra, which will keep its regulatory role.

The deemed duty mechanism will continue with proposed modifications, and the inland freight equalisation margin will stay for now while a new structure separating adjustments such as sales tax is developed. The State Bank of Pakistan has been asked to weigh a scheme that lets refineries hold foreign currency, and the government plans roadshows in Middle Eastern countries, Azerbaijan and Turkiye to attract foreign investment.