ISLAMABAD (Lord Media): The government has approved a proposal to upgrade refineries in a bid to reduce reliance on imported fuel, aiming for complete local production of diesel.
Significant amendments have been decided for the 2023 Brownfield Refinery Policy, which will adjust the sales tax on upgrading machinery or products. These policy changes are intended to attract an investment of 6 billion U.S. dollars.
Under the policy, customs duty on the import of upgrading machinery will be zero, and refineries will receive an incentive package. Refineries will also be allowed to open foreign currency accounts in domestic banks.
The target is to complete the refinery upgrades within the next 3 to 5 years. Following this, a reduction in petrol and diesel prices is expected, along with an increase in local fuel production.
It is proposed that the pricing of petroleum products be based on crude oil to reduce dependency on current import prices.
