Refineries agree to launch $6bn upgrade plan

All five refineries are now ready to initiate upgrade projects involving a $6 billion investment after the government addressed their key demand for clearance of their Rs34bn stuck-up funds through petroleum pricing. The chief executive officers (CEOs) on Tuesday had a meeting with Petroleum Minister Ali Pervaiz Malik to appreciate his proactive role in resolving almost a year-long problem hampering refinery expansion plans, and promised to immediately go ahead with investment plans soon after the budget was provided the matter stood permanently resolved. Last week, the government allowed about Rs1.87 per litre increased adjustment through transportation margin in petrol and diesel prices to clear about Rs34bn stuck up funds since July 2024. The refineries are required to pay standard rate of sales tax on their input costs that they used to recover through sale prices under the zero-rated regime.