ISLAMABAD – The government has announced a 20-year tax holiday andexemption from all duties and taxes for investors that will set updeep-conversion oil refineries, which will specifically facilitateconsumers of central Punjab near Lahore.

Though the incentives have been offered to all investors, Pak-Arab RefineryLimited (Parco) and China will particularly benefit from the move.

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This came after Pakistan and China signed a memorandum of understanding(MoU) in the second week of April for building the South-North gaspipeline, an upcountry deep-conversion oil refinery and a crude oilpipeline.

Another MoU was inked between Pakistan State Oil and Power China forconstruction of the upcountry deep-conversion oil refinery and laying thecrude oil pipeline.

The tax break and duty exemption were approved in a meeting of the EconomicCoordination Committee (ECC) of the cabinet, chaired by Abbasi, at thePrime Minister’s Office on Friday.

In an effort to stimulate investment in the country, the ECC approved alandmark incentive package for setting up new state-of-the-artdeep-conversion oil refineries anywhere in the country including theexpansion of existing refineries by a minimum of 100,000 barrels per day.

The package will also be applied to the Parco coastal refinery project.