Pakistan’s Refineries Agree to Upgrade Plants Despite New Penalty

Pakistani oil refineries are prepared to sign long-delayed agreements to upgrade their plants, despite strong objections to a new 2.5 percent penalty on deemed duty retained on diesel. The refineries welcome the government's amended Brownfield Refinery Policy, which aims to modernize aging infrastructure and attract investment, but argue the penalty is unfair as delays were not their fault. Petroleum Minister Ali Pervaiz Malik expects the agreements to be finalized soon, with the Petroleum Division aiming for signing by the end of August. These upgrades are crucial for Pakistan to reduce its $1.5 billion annual cost from fuel imports and enhance energy security.