Islamabad: In order to encourage modern oil refineries, the government has extended a landmark incentive package for deep conversion oil refineries, a news source reported. These include exemptions from taxes and levies, including a 20-year income tax holiday.
The exemption will be applicable on all machinery, vehicles, plants and equipment, including any and all materials needed to set up or repair the refineries. It will also be applicable on existing facilities with capacity of at least 100,000 barrels per day (bpd) oil.
With the exploration of hydrocarbon resources in full swing, experts expect Pakistan to become self-reliant in crude oil production soon. It was for this purpose that the government recently assigned the task of completion of Khalifa Coastal Oil Refinery to Pakistan Arab Refinery Company (PARCO). A project that had seen significant delay and was all but abandoned.
The refinery will have the capacity to refine 250,000 bpd, equalling 13 million tons of petroleum products per year.
