Pakistan's top refineries apprise finance division of multibillion-dollar investment plans

The heads of Pakistan’s leading oil refineries on Monday briefed Finance Minister Muhammad Aurangzeb and his team on upcoming investment plans, including multibillion-dollar plant upgrades aimed at boosting domestic petrol and diesel production capacity.

Aurangzeb, who also serves as federal minister for finance and revenue, met with a delegation of chief executive officers from Pakistan’s top oil refineries at the Finance Division. The chairman of the Federal Board of Revenue and senior officials from the Finance and Revenue Division also attended.

The delegation noted that once implemented, the upgrades could save Pakistan nearly $1 billion annually in foreign exchange by reducing reliance on imported refined fuels.

Refinery representatives also raised concerns about the shift in the sales tax regime on petroleum products from zero-rated to exempt supplies. They explained that the change had significantly increased both operational and capital expenditures for the refining sector, adversely affecting the financial viability of planned upgrades.

Aurangzeb assured the CEOs that the government would carefully review their concerns—particularly those related to sales tax exemptions—and address the issue in a manner that supports the continued growth and modernization of the domestic refining industry.

Refineries prepared to meet fuel requirements of armed forces

Pakistan’s leading refineries have assured full preparedness to meet the fuel requirements of the country’s armed forces, emphasizing that strategic reserves and uninterrupted production capacity are in place to support national defense under any circumstances.

The commitment was reaffirmed during a high-level meeting between CEOs of major refineries and Federal Minister for Petroleum Ali Pervaiz Malik at the Ministry of Petroleum. Discussions focused on sustainable energy supply, refinery performance improvements, and challenges facing the industry.

Officials reviewed refinery upgrade plans, fuel quality standards, and policies aimed at enhancing the petroleum sector’s efficiency and contribution to Pakistan’s economy. Malik reiterated the government’s support for the refining industry and pledged efforts to provide affordable, sustainable energy to consumers.

In light of recent tensions with India, Malik praised refineries for their proactive measures to ensure energy security for both civilian and military sectors.

Attendees included Zahid Mir, CEO of Pakistan Refinery Limited; Artaaza Qureshi, Managing Director of PARCO; Adil Khattak, CEO of Attock Refinery Limited; Amir Abbasi, CEO of Synergyco; and Asad Hassan, CEO of National Refinery Limited.