SIFC Supports Refinery Demands, Advocates Budget Measure Reversal.

The Special Investment Facilitation Council (SIFC) has supported the demands of refineries to reverse budgetary measures that could lead to their closure and hinder a $6 billion plant upgrade program. Refinery executives highlighted the negative impacts of sales tax exemptions and customs duties on imported equipment, which would increase project costs and prevent tax refunds. The International Monetary Fund (IMF) urged the government to halt refunds, leading to the sales tax exemptions. Refineries have been pressing for resolution of these issues and the implementation of a new refinery policy. The government recently extended the deadline for signing agreements with the Oil and Gas Regulatory Authority (Ogra) by six months, but budget measures could impede refinery upgrades. The Pakistan Refining Policy for Up-gradation of Existing/Brownfield Refineries 2023 offers incentives for investment, but the sales tax exemption could make projects unviable and result in a loss of $4.5 billion in investment. [Extracted from the article]