The economic crisis in the country is getting serious, there is also a lot of smuggled products. Due to these two reasons, production has been suspended in the country’s largest oil refinery. According to petroleum industry sources, Pakistan’s largest oil refinery Parco Shut down, PARCO management said the refinery has been shut down due to urgent need of repairs.
According to the sources, the decrease in consumption of diesel and petrol products produced in the country is the main reason for the closure of the refinery.All the refineries, including PARCO, had informed the authorities about the problems. The Federal Minister of State also visited PARCO yesterday.
Earlier, the news came out that the federal government has decided to increase the production of petroleum products from crude oil on local basis in the country in order to reduce the import bill of oil. The rate of duty is likely to be increased from 7.5% to 12.5% and 12.5% deemed duty is also likely to be imposed on petrol.
It has been said in the budget proposals given by the oil refineries to the government for the next financial year that the government should have policy and structural support to promote more investment in the existing oil refineries in the country and to invest in the projects of deep conversion refineries. Reforms are needed.
Deep conversion refinery projects involve billions of dollars of investment and it takes 5 to 6 years to complete the project, but new investment is very difficult for the existing oil refineries in Pakistan that are currently available. The environment is not favorable for new investment of billions of dollars in this sector due to poor profitability regime.
FBR officials said that proposals to increase the rate of deemed duty for oil refineries are being reviewed, however, the effects of tax revenue related to the abolition of turnover tax are being reviewed and the final decision in this regard will be made in the next two days.