ISLAMABAD – The government is making all-out efforts to upgrade existingoil refineries and establish new deep conversion facilities to achieveself-sufficiency in this sector.“For the purpose, the government has recently banned import of furnace oiland announced unprecedented incentives package for setting up new deepconversion oil facilities,” official sources told APP.The government, they said, had advised the existing oil refineries to enterinto commercial agreements with power producers for utilization of theircapacity for furnace oil storage and modernization of their facilities.The sources said an unprecedented incentives package was in place forsetting up new deep conservation oil refineries, under which interestedparties were exempted from all duties, taxes, surcharges and levies onimport besides a 20-year income tax holiday.“The exemption will be applicable on all machinery, vehicles, plants andequipment, other materials and consumables for setting up, operation,maintenance and repair of a refinery.” they said.The package, the source said, would also be applicable on existingfacilities where refining capacity was expanded by installing deepconversion units with capacity of at least 100,000 barrels per day (bpd)oil.Answering a question, they said in June 2015, the Byco Petroleum Companyhad established the country’s largest production unit, having refiningcapacity of 120,000 bpd oil, in Balochistan, adding that Trans-Asia, aprivate sector petroleum company was also planning to set up a refinerywith the capacity to develop 100,000 bpd oil.They said local as well as foreign investors were reposing full confidencein prudent and business-friendly economic policies introduced by thegovernment and making investments in the energy sector.Presently, around six oil refineries are operating in the country and thegovernment is working for their up-gradation on modern lines.
Federal government announced unprecedented incentive package for new oil refineries in Pakistan
