Industry warns that cutting the import duty from 7.5% to 5% could undermine billions in planned refinery upgrade investments.
Image: TET
Prime Minister Shehbaz Sharif is expected to make a final decision on the country’s refinery policy today amid growing concern from the petroleum industry over proposed changes to import duties.
Refinery operators have warned that reducing the duty from 7.5% to 5% could make local refining less competitive and discourage investment in long-planned upgrade projects aimed at improving fuel quality and increasing production efficiency.
Industry representatives say the policy decision is critical for Pakistan’s energy security, as refinery modernization projects are linked to cleaner fuel standards, lower import dependence and future investment commitments. The government is expected to weigh the potential impact on consumers, revenue collection and the broader energy sector before announcing its final stance.
