The government is exploring the possibility of granting a sales tax exemption on imported equipment and machinery for upgrading refineries under the Brownfield Refinery Policy, The News reported.
Minister for Petroleum Ali Pervaiz Malik indicated during meetings with key stakeholders in the oil sector that imposing sales tax on petroleum products would be difficult due to its inflationary impact. He noted that meeting the IMF’s demand for a uniform sales tax regime poses challenges without raising domestic petroleum prices.
A participant in the meetings quoted Malik as saying that while the exemption on petroleum products may be removed in the upcoming budget, it is unlikely that new sales tax will be imposed on petroleum products sold domestically.
Malik also met representatives from the Oil Companies Advisory Committee (OCAC), including leaders from Wafi Energy Pakistan, Pakistan Refinery Limited, and PSO, to discuss industry challenges, regulatory updates, and the need for coordinated policies to ensure a stable energy supply chain.
In a separate meeting with the Petroleum Dealers Association, chaired by Abdul Sami Khan, Malik addressed concerns over operational challenges and dealer profit margins. He assured that these issues would be addressed through ongoing dialogue.
Khan raised concerns over “unchecked powers” given to assistant and deputy commissioners to inspect and seal petrol pumps, which dealers say have created anxiety across the sector.
The minister assured dealers that their concerns would be addressed through constructive dialogue and reaffirmed the government’s commitment to making Pakistan’s energy sector more resilient, sustainable, and innovative.
The minister emphasized the government’s focus on strengthening the energy sector’s resilience and sustainability through streamlined operations, emission reductions, and support for the clean energy transition. He called for cooperation among all stakeholders to build a modern energy sector aligned with the nation’s evolving needs.
