The chief executive officers (CEOs) of Pakistan’s leading oil refineries on Monday shared with Finance Minister Muhammad Aurangzeb their concerns over a shift in the sales tax regime on petroleum products from zero-rated to exempt supplies.
In a meeting at the Finance Division, the CEOs said the decision had triggered a significant increase in both operational and capital expenditure for the refining sector, hampering the financial viability of their planned upgrades. They explained that their envisaged upgrades included multi-billion-dollar plant upgrades aimed at enhancing the domestic production capacity of petrol and diesel. Once implemented, they said, the upgrades had the potential to save the country close to $1 billion annually in foreign exchange by reducing reliance on imported refined fuels.
Welcoming the delegation’s input, Aurangzeb appreciated the refining sector’s vital role in strengthening Pakistan’s energy security and reducing the import bill. He assured the CEOs that the government would carefully review their concerns, especially those relating to the sales tax exemptions, adding the issue would be addressed in a manner supporting the continued growth and modernization of the domestic refining industry.
The meeting concluded with a reaffirmation of the government’s commitment to enabling long-term investment in the energy sector and promoting sustainable industrial development.