Refineries CEOs meet with Ministers to get rid of GST on petroleum sector

ISLAMABAD: A high-level delegation, including the Chief Executive Officers (CEOs) of Pakistan’s leading refineries, recently met with Federal Minister for Petroleum Ali Pervaiz Malik and Finance Minister Senator Muhammad Aurangzeb to discuss the impact of the Goods and Services Tax (GST) on refineries. The meeting focused on enhancing collaboration between the government and the refining sector to ensure a sustainable energy supply, improve refinery efficiency, and address key challenges facing the industry.
Held at the Ministry of Petroleum, the meeting provided a platform for constructive dialogue on critical issues such as refinery upgradation, fuel quality standards, and the development of policy frameworks aimed at boosting the petroleum sector’s contribution to Pakistan’s economy. Minister Ali Pervaiz Malik reiterated the government’s commitment to facilitating the refining industry’s growth while ensuring affordable and reliable energy for consumers.
In light of recent border tensions with India, the refinery CEOs assured the ministers of their full operational readiness to meet the fuel requirements of the Armed Forces of Pakistan. They highlighted that necessary arrangements, including strategic fuel reserves and uninterrupted production capabilities, were in place to support national defense needs in any scenario. Minister Malik commended the refineries for their proactive measures and reiterated the government’s full support in ensuring energy security for both civilian and defense sectors.
“The government recognizes the vital role of refineries in Pakistan’s energy landscape. We are committed to providing a conducive policy environment to support modernization, improve fuel quality, and ensure long-term sustainability. This collaboration is crucial for achieving energy security and economic growth, ensuring a robust and resilient petroleum sector for the future,” Minister Malik emphasized.
The refinery CEOs appreciated the minister’s proactive approach and shared insights on operational challenges, seeking government support for upgradation and fiscal incentives. Both parties agreed to maintain regular consultations to drive the sector forward.
The delegation included Zahid Mir, CEO of Pakistan Refinery Limited; Irtiza Qureshi, Managing Director of PARCO; Adil Khattak, CEO of Attock Refinery Limited; Amir Abbasi, CEO of Cynergico; and Asad Hasan, CEO of National Refinery Limited. Secretary Petroleum Momin Agha, Additional Secretary Zafar Abbas, and Director General Oil Imran Ahmed were also present at the meeting.
Following the discussions, Adil Khattak, , highlighted the primary issue addressed during the meeting: the exemption of petroleum products from sales tax under the Finance Act of 2025. This exemption has prevented refineries and Oil Marketing Companies (OMCs) from adjusting sales tax paid at the input stage, making normal operations unsustainable. Additionally, this anomaly has nullified the incentives provided under the Brownfield Refineries Upgradation Policy, making the $6 billion investment unviable. The refineries also pointed out that delays in implementing the Refineries Upgradation Policy over the past five years have caused a loss of approximately $5 billion to the country.
Both the Petroleum and Finance Ministers assured the refinery delegation that they fully understand the issue and will take all possible measures to resolve it. Ends