KARACHI: The chief executive officers (CEOs) of leading oil refineries on Monday called on Finance Minister Muhammad Aurangzeb and discussed with him investment plans, including multi-billion-dollar plant upgrades aimed at enhancing the domestic production capacity of petrol and diesel.
Pakistan produces some petrol and diesel domestically, but it is not sufficient to meet the country’s total demand. The country imports significant quantities of crude oil and refined petroleum products to supplement domestic production. Pakistan’s five oil refineries have a combined capacity to process 450,000 barrels of crude oil per day.
In the first four months of fiscal year 2025, petrol production was up by 4.50 percent and high-speed diesel by 7.85 percent, compared to the same period last year. This increase is attributed to rising demand in the transport and agriculture sectors.
On Monday, a delegation a CEOs of top oil refineries briefed the finance minister and his team on their upcoming investment plans, which include multi-billion-dollar plant upgrades aimed at enhancing domestic production.
“The delegation highlighted that these upgrades, once implemented, have the potential to save the country close to $1 billion annually in foreign exchange by reducing reliance on imported refined fuels,” a statement from the finance division said.
The refinery representatives also raised concerns regarding the change in the sales tax regime on petroleum products, specifically the shift from zero-rated to exempt supplies.
“They explained that this change has led to a significant increase in both operational and capital expenditure for the refining sector, adversely impacting the financial viability of their planned upgrades,” the statement added.
This change in the sales tax regime, introduced by the Finance Act 2024, means that certain petroleum products like motor spirit (petrol), high-speed diesel, kerosene, and light diesel oil are now exempt from sales tax instead of being zero-rated. This change has raised concerns from refineries, who worry about increased operational and capital costs due to the disallowance of input sales tax claims.
Aurangzeb assured the CEOs that the government would carefully review their concerns, especially those relating to the sales tax exemptions, and added that the issue would be addressed in a manner that supports the continued growth and modernization of the domestic refining industry.
“The meeting concluded with a reaffirmation of the government’s commitment to enabling long-term investment in the energy sector and promoting sustainable industrial development,” the finance division said.
Pakistan imported 137,000 barrels per day of crude in 2024, mostly light grades from the Middle East, with Saudi Arabia and the United Arab Emirates among its top suppliers, data from analytics firm Kpler showed. Oil imports amounted to $5.1 billion in 2024, data from Pakistan’s central bank showed.
In February, Saudi Arabia, through the Saudi Fund for Development (SFD), extended a $1.2 billion financing facility to Pakistan for the import of oil products for a year.
The SFD has provided approximately $6.7 billion to Islamabad for oil products since 2019.
Pakistan’s top oil refineries push ahead with investments, plant upgrades to boost domestic production
https://arab.news/my8bf
Pakistan’s top oil refineries push ahead with investments, plant upgrades to boost domestic production
- CEOs of refineries call on Finance Minister Muhammad Aurangzeb to discuss investment plans
- Oil imports amounted to $5.1 billion in 2024, April data from Pakistan’s central bank showed
US freezes visa processing for 75 countries, media reports Pakistan included
- State Department announces indefinite pause on immigrant visas starting Jan 21
- Move underscores Trump’s hard-line immigration push despite close Pakistan-US ties
ISLAMABAD: The United States will pause immigrant visa processing for applicants from 75 countries starting Jan. 21, the State Department said on Wednesday, with Fox News and other media outlets reporting that Pakistan is among the countries affected by the indefinite suspension.
The move comes as the Trump administration presses ahead with a broad immigration crackdown, with Pakistan included among the affected countries despite strong ongoing diplomatic engagement between Islamabad and Washington on economic cooperation, regional diplomacy and security matters.
Fox News, citing an internal State Department memo, said US embassies had been instructed to refuse immigrant visas under existing law while Washington reassesses screening and vetting procedures. The report said the pause would apply indefinitely and covers countries across Asia, Africa, the Middle East, Europe and Latin America.
“The State Department will pause immigrant visa processing from 75 countries whose migrants take welfare from the American people at unacceptable rates. The freeze will remain active until the US can ensure that new immigrants will not extract wealth from the American people,” the Department of State said in a post on X.
According to Fox News and Pakistan news outlets like Dawn, the list of affected countries includes Pakistan, Afghanistan, Bangladesh, Iran, Iraq, Egypt, Nigeria, Russia, Somalia, Brazil and Thailand, among others.
“The suspension could delay travel, study, and work plans for thousands of Pakistanis who annually seek US visas. Pakistani consulates in the US are expected to provide guidance to affected applicants in the coming days,” Dawn reported.
A State Department spokesman declined comment when Arab News reached out via email to confirm if Pakistan was on the list.
The Department has not publicly released the full list of countries or clarified which visa categories would be affected, nor has it provided a timeline for when processing could resume.
Trump has made immigration enforcement a central pillar of his agenda since returning to office last year, reviving and expanding the use of the “public charge” provision of US immigration law to restrict entry by migrants deemed likely to rely on public benefits.
During his previous term as president, Trump imposed sweeping travel restrictions on several Muslim-majority countries, a policy widely referred to as a “Muslim ban,” which was challenged in US courts before a revised version was upheld by the Supreme Court. That policy was later rescinded under the President Joe Biden administration.
The latest visa freeze marks a renewed hardening of US immigration policy, raising uncertainty for migrants from affected countries as Washington reassesses its screening and vetting procedures.
The freeze on visas comes amid an intensifying crackdown on immigration enforcement by the Trump administration. In Minneapolis last week, a US Immigration and Customs Enforcement (ICE) agent shot and killed 37-year-old Renee Good, a US citizen, during a federal operation, an incident that has drawn nationwide protests and scrutiny of ICE tactics. Family members and local officials have challenged the federal account of the shooting, even as Department of Homeland Security officials defended the agent’s actions. The case has prompted resignations by federal prosecutors and heightened debate over the conduct of immigration enforcement under the current administration.
