Islamabad: The government plans to offer an ‘unprecedented’ incentives package to companies willing to set up new oil refineries inside the country, a news source reported.
Interested parties will be exempted from duties, taxes, surcharges, and levies on imported products. They will also be offered a 20-year income tax holiday incentive.
This package will be applicable to the companies engaged in the import of machinery, vehicles, plants and equipment, and consumables aimed at setting up new deep oil conversion facilities.
This incentive facility would also be applicable on existing facilities whose refining capacity has been expanded by installing deep conversion units with a capacity of at least 100,000 barrels per day (bpd) of oil.
Reportedly, the federal government is making its utmost efforts to upgrade existing oil refineries as well as to establish new deep conversion facilities for achieving self-sufficiency in the petroleum sector.
To facilitate this measure, the government recently banned the import of furnace oil. Moreover, existing oil refineries were asked to enter into commercial agreements with power producers.
