Pakistan to Revise Petroleum Import Rules for First Bonded Oil Storage Facility

Pakistan is set to revise its petroleum import policy to establish its first commercial customs-bonded oil storage system. This initiative aims to attract Gulf producers and global commodity traders by allowing them to store petroleum products in Pakistan for domestic sale or re-export, while also enhancing the country's fuel security and providing access to stocks during emergencies. The move comes as the government seeks to operationalize a framework approved in June 2023, which has not yet attracted foreign suppliers, and is influenced by recent disruptions in the Strait of Hormuz highlighting energy supply vulnerabilities. The revised framework will permit foreign suppliers to store various petroleum products at approved port and inland locations, facilitating movement through Pakistan's pipeline network without immediate customs duties. This new system will operate alongside the existing import regime for licensed oil marketing companies and refineries.