Paving the way for $6 billion investment for refinery upgrades
Published 6 hours ago | By Pak24tv
The Petroleum Division has sent a 129-page summary to the Cabinet Committee on Energy for approval, paving the way for an investment of $6 billion for the upgrade of refineries.
According to sources, 6 new clauses have been proposed to be included in the Refinery Policy 2023. The government has also proposed a 7-year incentive package for refineries. Legal protection will be provided to investors through stability and equity clauses.
After approval, upgrade agreements will be signed between local refineries and OGRA. After the upgrade, Euro-five standard fuel will be produced. The policy aims to increase the production of petrol and high-speed diesel and reduce furnace oil.
According to the summary, refineries will be obliged to sign an upgrade agreement with OGRA within 90 days of notification. Refineries will be allowed to open foreign currency accounts to repay external loans.
Meanwhile, SIFC has recommended providing relief to refineries that are delaying upgrade contracts.
