Pakistan’s Special Investment Facilitation Council (SIFC) and Economic Coordination Committee (ECC) approved a settlement framework for outstanding petroleum levy dues owed to Cnergyico PK Limited (CPL), the country’s largest refinery. Consequently, this decision paves the way for refinery modernisation and Euro-V fuel production.
The ECC, acting on SIFC’s directives, approved a framework to recover the principal amount of CPL’s petroleum levy dues. Additionally, the Petroleum Division is authorised to sign the settlement deed with CPL. This aligns with decisions from the SIFC Apex, Executive Committee, and Implementation Committee, ensuring a structured resolution.
However, CPL’s receivables from government entities remain unresolved. Nevertheless, officials are optimistic, citing SIFC’s proactive role and the Petroleum Division’s commitment. For instance, industry insiders describe the settlement as a “game-changer” for refinery upgrades under the Brownfield Refining Policy.
Read: Pakistan Refinery to Import Nigerian Bonny Light Crude
The settlement enables CPL to execute its agreement with the Oil and Gas Regulatory Authority (OGRA) under the Brownfield Refining Policy. This policy incentivises investment in modernising existing refineries to meet Euro-V fuel standards, reducing Pakistan’s reliance on costly fuel imports. As a result, the decision supports energy security and economic savings.
Last week, Pakistan’s refineries collectively urged the government and SIFC to address outstanding sales tax issues. Specifically, they requested exemptions from sales tax and customs duties for project-related expenditures, a benefit already available under the Greenfield Refining Policy. Industry leaders argue this would resolve bottlenecks, unlocking nearly $6 billion in refinery upgrades.
Consequently, refineries are hopeful that the ECC will soon approve the tax exemption proposal. Such a move could accelerate multibillion-dollar projects, enhancing Pakistan’s refining capacity and global competitiveness.
