CEOs of refineries appreciate resolution of sales tax issue
The meeting underscored the government's firm commitment to ensuring energy security and facilitating refinery upgrade projects worth over USD 6 billion, which are critical to modernising Pakistan's refining infrastructure. The resolution of the sales tax issue marks a significant milestone in creating a conducive environment for investment and operational efficiency in the oil refining industry.
The CEOs lauded the Petroleum minister's proactive approach and the PM's personal efforts/support in addressing key challenges faced by the sector. They reiterated their commitment to advancing refinery upgradation projects in line with the prime minister's vision for enhancing fuel quality, reducing emissions, and promoting clean energy solutions.
Speaking on the occasion, Federal Minister Ali Pervaiz Malik emphasised that the government is fully dedicated to fostering a sustainable energy ecosystem.
'The steps to address the sales tax issue reflects our unwavering resolve to support the refining sector, which plays a pivotal role in Pakistan's energy security and economic growth. The refinery upgrades will not only enhance production efficiency but also align with our goal of transitioning toward cleaner and more sustainable energy sources,' he stated. Furthermore, he highlighted that policy consistency is the corner stone for viability of any sector, fostering investor confidence.
The refinery upgradation projects, once completed, will significantly improve fuel standards, reduce reliance on imported petroleum products, and contribute to environmental sustainability by producing Euro-V compliant fuels. This initiative is at heart of the government's broader strategy to strengthen the energy sector and ensure long-term economic stability through foreign investments.
The delegation included Zahid Mir-CEO Pakistan Refinery Limited, Irtiza Qureshi - MD PARCO, Adil Khattak - CEO Attock Refinery Limited, Amir Abbasi - CEO Cynergico, and Asad Hasan - CEO National Refinery Limited.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
13 hours ago
- Business Recorder
Finance Act 2025: Pakistan's auto industry grapples with enforcement challenges
ISLAMABAD: The auto industry is confused to deal with the enforcement of the Finance Act 2025 which has restricted ineligible persons from booking or purchasing motor vehicles from July 1, 2025. The Federal Board of Revenue (FBR) Member Inland Revenue (Policy) has received a letter from Pakistan Automotive Manufactures Association (PAMA) seeking clarification on bar on Booking and Purchase of Motor Vehicles under the Finance Act 2025. According to the PAMA, refer to the subject matter regarding the enforcement of the new law under the Finance Act 2025, which restricts ineligible persons from booking or purchasing a motor vehicle. The law further mandates that any motor vehicle booked or purchased by such persons shall not be registered by the relevant authorities. In this regard, we request clarifications to facilitate the smooth transition and effective implementation of the new law: 'Localization transforming Pakistan's automotive industry' a) The process for determining eligibility remains unclear. Since the restriction applies at the booking stage—the initial step towards vehicle purchase—it implies that every prospective buyer must first obtain an eligibility certificate or similar approval from the competent authority before proceeding. b) As the eligibility certificate will be a crucial document, we request that the issuance mechanism be defined promptly to avoid delays in motor vehicles bookings. It is suggested that FBR consider developing an eligibility portal similar the filers portal. c) The definition of an eligible person under the Income Tax Law applies to individuals, companies, and associations of persons. This condition should not apply to purchases made by the Federal Government, Provincial Government, Local Government, Armed Forces and their related departments, Organisations, authorities, etc. As the new law has already come into effect from July 1, 2025, we anticipate delays in operational clarity. In the interim, we urge the government to consider allowing temporary bookings for waiting customers until requisite clarifications are issued. The association referred to section 114C (Restriction on economic transactions by certain persons), Notwithstanding anything contained in any law for the time being in force, —(a) any application, by any ineligible person, for booking, purchase or registration of a motor vehicle of the value exceeding the threshold given in Fifteenth Schedule, shall not be accepted or processed by any manufacturer of a motor vehicle or vehicle registering authority of Excise and Taxation Department, as the case may be, the new section in the Income Tax Ordinance 2001 stated. The FBR's early attention and action to this matter will be highly appreciated, it added. Copyright Business Recorder, 2025
Business Recorder
15 hours ago
- Business Recorder
KE says accelerating captive-to-grid shift
KARACHI: K-Electric (KE) is actively facilitating Karachi's manufacturing sector to make a smooth shift to the electricity grid, an action that comes in tandem with the government's policy move to encourage industries' switch from captive power plants. Under this banner, KE is holding 'Open House' sessions – specifically designed for industrial customers – in collaboration with trade associations since May this year. The weekly sessions bring together KE's supply business, commercial, technical, and planning teams to engage directly with industry stakeholders in order to support smooth transition from their in-house generation to KE's supply. A priority during this 'one-window KE facility' of a weekly open-house is also to address as promptly as possible any concerns that the customers may have. Customized packages based on actual load requirements, tariff assessments, and infrastructure feasibility are also being provided. KE CEO Moonis Alvi said: 'KE is actively playing its part in helping how power is delivered to Pakistan's industrial backbone. By moving away from fragmented captive generation and toward a unified, reliable grid, we are not only improving operational efficiency for industries but also contributing to national energy optimization.' Copyright Business Recorder, 2025
Business Recorder
15 hours ago
- Business Recorder
Finance Act 2025: Auto industry grapples with enforcement challenges
ISLAMABAD: The auto industry is confused to deal with the enforcement of the Finance Act 2025 which has restricted ineligible persons from booking or purchasing motor vehicles from July 1, 2025. The Federal Board of Revenue (FBR) Member Inland Revenue (Policy) has received a letter from Pakistan Automotive Manufactures Association (PAMA) seeking clarification on bar on Booking and Purchase of Motor Vehicles under the Finance Act 2025. According to the PAMA, refer to the subject matter regarding the enforcement of the new law under the Finance Act 2025, which restricts ineligible persons from booking or purchasing a motor vehicle. The law further mandates that any motor vehicle booked or purchased by such persons shall not be registered by the relevant authorities. In this regard, we request clarifications to facilitate the smooth transition and effective implementation of the new law: 'Localization transforming Pakistan's automotive industry' a) The process for determining eligibility remains unclear. Since the restriction applies at the booking stage—the initial step towards vehicle purchase—it implies that every prospective buyer must first obtain an eligibility certificate or similar approval from the competent authority before proceeding. b) As the eligibility certificate will be a crucial document, we request that the issuance mechanism be defined promptly to avoid delays in motor vehicles bookings. It is suggested that FBR consider developing an eligibility portal similar the filers portal. c) The definition of an eligible person under the Income Tax Law applies to individuals, companies, and associations of persons. This condition should not apply to purchases made by the Federal Government, Provincial Government, Local Government, Armed Forces and their related departments, Organisations, authorities, etc. As the new law has already come into effect from July 1, 2025, we anticipate delays in operational clarity. In the interim, we urge the government to consider allowing temporary bookings for waiting customers until requisite clarifications are issued. The association referred to section 114C (Restriction on economic transactions by certain persons), Notwithstanding anything contained in any law for the time being in force, —(a) any application, by any ineligible person, for booking, purchase or registration of a motor vehicle of the value exceeding the threshold given in Fifteenth Schedule, shall not be accepted or processed by any manufacturer of a motor vehicle or vehicle registering authority of Excise and Taxation Department, as the case may be, the new section in the Income Tax Ordinance 2001 stated. The FBR's early attention and action to this matter will be highly appreciated, it added. Copyright Business Recorder, 2025
