May 21, 2021 (MLN): Pakistan Refinery Limited (PRL) is all set to install $1.2bn up-gradation projects in order to expand its production capacity including the HSFO plant to convert oil into other by-products.
This strategic business move has taken to reap multiple incentives offered under Pakistan's new refinery expansion policy. The new refinery policy which is yet to be approved by ECC will provide a 20-year tax holiday and up to nine-year cascading customs duty reduction in pricing provided the investors sign construction agreements before Dec 31, 2021.
As the new policy encourages existing refineries to utilize this opportunity by upgrading their capacity and deploying the latest technology to reduce the reliance on petroleum imports, PRL has planned to invest around $1.2bn to upgrade its production capacity.
“There are speculations in the market that the company is going to invest around $1.2billion however, the budget may vary according to the nature and requirements of the projects,” PRL’s representative while talking to Mettis Global News said.
He further said that the above strategic move has taken to be in line with the government’s objective to reduce the dependence on imports for gasoline and other oil products.
While expressing his views about Pakistan’s new refinery policy, the representative said, “PRL believes that new refinery policy has the potential to encourage refineries in Pakistan to upgrade and deploy the latest technology which will pave the way towards sharp increment production capacity.”
Besides declining the dependence on imports, the up-gradation projects will also allow us to be take up the vision of the government to employ Euro 5 standard fuels which helps refineries to reduce the negative impact on the environment, he further added.
