The government is encouraging establishment of new deep conversion oil refineries by extending a landmark incentive package including exemption from all duties, taxes, surcharges and levies on import besides a 20-year income tax holiday.
“The exemption will be applicable on all machinery, vehicles, plants and equipment, other materials and spares and consumables for setting up, operation, maintenance and repair of the refinery,” official sources told APP.
The package facility, they said, would also be applicable on existing facilities where refining capacity was expanded by installing deep conversion units with capacity of at least 100,000 barrels per day (bpd) oil.
The sources said Pakistan was moving fast towards achieving self-reliance in crude oil production after the government accelerated exploration of indigenous hydrocarbon resources during the last five years.
In June 2015, the Byco Petroleum Company had established the country's largest production unit, having refining 120,000 bpd oil capacity, in Balochistan.
Trans-Asia, a private sector petroleum company is also planning to set up a refinery with the capacity to develop 100,000 bpd oil.
Recently, the government in a significant move to achieve autarky in the oil production sector, has given the task to Pakistan Arab Refinery Company (PARCO) to complete the much-delayed and abandoned multi-billion dollar Khalifa Coastal Oil Refinery project.
The coastal refinery will have the capacity to refine 250,000 bpd – equal to 13 million tons of petroleum products per year, he added.
Setting up of back-to-back oil refineries speak about the present government's seriousness towards resolving the energy crisis and achieving self-sufficiency in this sector.
Local as well as foreign investors, the official said, were reposing full confidence in prudent and business-friendly economic policies introduced by the government and making huge investments in the energy sector.
Presently, as many as six oil refineries are operating in the country and they have full capacity to refine the product as per needs of the country.