KARACHI: Pakistan has approved an oil refinery policy to encourage the establishment of new refining plants and the upgrade of existing ones, the planning ministry said on Monday, as the nation eyes billions in investment from foreign powers, particularly Saudi Arabia and the United Arab Emirates.
The South Asian nation plans to use lucrative incentives to attract $10-15 billion investment for a world-scale deep-conversion refinery and petrochemical complex. The incentives include a 20-year income tax holiday on all taxes under the Income Tax Ordinance 2001, which will apply to new deep-conversion oil refinery projects with a minimum 100,000 barrels per day refining capacity, starting before December 31, 2025, according to a policy draft seen by Arab News.
The country hopes to attract Saudi and Emirati interests through incentives offered for the deep-conversion oil refinery projects.
The energy committee of Prime Minister Imran Khan’s cabinet last week approved the Pakistan Oil Refinery Policy 2021 and directed the petroleum division to revisit the upfront incentive package offered to existing refineries in the country.
“A new oil refining policy is being rolled out this year under which various fiscal and other incentives shall be offered to existing and new players, such as Saudi Aramco, to upgrade and set up deep-conversion oil refineries in the country,” Tabish Gauhar, PM Khan’s aide on power, told Arab News.
“There was inclination from Saudi Arabia and Abu Dhabi for investment in refining sector and the government has given them the incentives through this policy,” Dr. Nazar Abbas Zaidi, former secretary of the Oil Companies Advisory Council (OCAC), told Arab News.
“The government has also offered incentives to the existing refineries to upgrade themselves so that they could produce products of Euro-V standard,” he added. “This industry is capital intensive as even a small-scale refinery needs around $2 billion investment.”
Some experts believe the new policy will help Pakistan increase its refining capacity, which would in turn reduce its import bills for petrol and diesel.
“Pakistan currently imports crude and refined products. After the implementation of the new policy, the country will be in a position to cut the imports of refined products by increasing its refining capacity,” Masood Abdali, a Texas-based energy expert and a former business development manager of Weatherford in Saudi Arabia and Bahrain, said.
Under the new policy, Pakistan will not impose duties and sales tax on the import of petroleum crude oil — the main raw material — by refineries themselves with effect from July 1, 2022. However, the finished product will be subject to import duties and sales tax, according to the policy draft.
The government will also provide tariff protection in the form of 10 percent import duty on motor gasoline and diesel of all grades as well as imports of any other white products used as fuel for any kind of motor or engine, effective from the date of commission for six years, provided that the refinery starts construction of the project before December 31, 2025.
For the upgrade of existing refineries and petrochemicals project, the policy offers a 10-year income tax holiday on all taxes under the Income Tax Ordinance 2001 from the date of commissioning of the upgrade, modernization or expansion process.
Each refinery is supposed to open and maintain a “special reserve account” for its upgrade in the National Bank of Pakistan .
Under this policy, Pakistan has also exempted projects from the Companies Profits (Workers’ Participation) Act, 1968 and Workers’ Welfare Fund Ordinance, 1971. The former binds business entities to contribute five percent of their pre-tax profits to the Workers’ Participation Fund, while the latter calls for providing low-cost housing and other amenities to industrial labor.
The government has also offered exemption from customs duties, surcharges, withholding taxes, or any other levies on import of equipment or material to be used in the projects without any certification by Pakistan’s Engineering Development Board.
Oil refineries in Pakistan are outdated and have only 20 million tons per anum (450,000 barrels per day) refining capacity, with a more pressing requirement to produce petroleum products of Euro-V standards.
Despite being integral to economic growth, no new refineries have been set up in the country for more than a decade. Only two refineries, including Pak-Arab Refinery Limited (PARCO), whose 60 percent shares are owned by the government, could be set up in Pakistan in the last 40 years. The other four include Attock Refinery Limited (ARL), National Refinery Limited (NRL), Pakistan Refinery Limited (PRL) and Byco Petroleum Pakistan Limited (BPPL).
Pakistan hopes to attract Saudi, UAE investment with new oil refinery policy
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Pakistan hopes to attract Saudi, UAE investment with new oil refinery policy
- South Asian country offers 20-year tax holiday, exemption in duties for new plants to up refining capacity
- Eyes $10-15 billion investment for a world-scale deep-conversion refinery and petrochemical complex
Pakistan court sentences four men to death for ‘online blasphemy’
- Many of the online blasphemy cases are being brought to trial by private “vigilante groups” led by lawyers
- National Commission for Human Rights says 767 people jailed, awaiting trial for blasphemy allegations
ISLAMABAD: A Pakistan court has sentenced four men to death for posting blasphemous content online, a member of a group of “vigilante” private lawyers that brought the prosecution said on Monday.
The four men were sentenced in Rawalpindi, the garrison city that neighbors the capital Islamabad, Rao Abdur Raheem, a lawyer from the Legal Commission on Blasphemy Pakistan (LCBP), told AFP.
Blasphemy is an incendiary charge in Muslim-majority Pakistan, where even unsubstantiated accusations can incite public outrage and lead to lynchings.
Pakistan has witnessed a sharp increase in the prosecution of “online blasphemy” cases, with private groups bringing charges against hundreds of young individuals for allegedly committing blasphemy.
“They were sentenced to death... on Friday for spreading blasphemous content online against the Prophet Muhammad and the Qur’an,” Raheem told AFP on Monday.
“Our case was supported by forensic evidence from the devices used in this heinous act,” he said of one of the LCBP’s latest prosecutions.
Despite the conviction, Pakistan has never executed anyone for blasphemy.
A member of a support group formed by the families confirmed the sentence to AFP and said the group would challenge the conviction.
“The pattern of arrests and prosecutions in this case is consistent with previous ones,” said the support group member, who spoke on condition of anonymity due to security concerns.
“We urge the government to establish a commission to investigate the rise in these cases before these young individuals spend the best years of their lives behind bars.”
Many of the online blasphemy cases are being brought to trial by private “vigilante groups” led by lawyers and supported by volunteers who scour the Internet for offenders, rights groups and police say.
The LCBP is the most active of those groups in Pakistan.
Sheraz Ahmad Farooqi, one of the group’s leaders, told AFP in October that “God has chosen them for this noble cause.”
A report published by the government-run National Commission for Human Rights in October last year said there were 767 people, mostly young men, in jail awaiting trial over blasphemy allegations.
“In these cases, due process was notably disregarded, with significant procedural violations observed at multiple stages,” the report said.
“Arrests were often carried out by private individuals rather than law enforcement.”
Cases can drag through the courts for years, although death penalties are often commuted to life in prison on appeal at the Supreme Court.
A special court was formed in September to expedite the dozens of pending cases.
Pakistan’s Shahzeb Rind successfully defends lightweight title at Karate event in Florida
- Rind, 26, defeats three-time world champion Edgars Skivers 7-0
- Rind boasts a combined Wushu and Kickboxing record of 75-4
ISLAMABAD: Pakistani Karate fighter Shahzeb Rind successfully defended his lightweight title against former three-time world champion Edgars Skrivers, defeating him 7-0 at the Karate Combat (KC) 52 event in Miami, the Pakistan Mixed Martial Arts Federation (PMMAF) announced on Sunday.
The KC52, a professional full-contact karate league, is part of a global karate MMA series featuring skilled fighters in action-packed competitions.
Rind, who hails from the impoverished southwestern Balochistan province, won his first martial arts title in 2011 after claiming victory in a provincial-level competition. His first national title came in 2019 when he triumphed at the National Games in the northwestern Khyber Pakhtunkhwa province.
During the two and half years of an undefeated Karate Combat career, Rind has fought fighters from North America, Peru, Venezuela, Brazil, France and India.
“In a stunning display of skill and determination, Rind has claimed his second championship title after a hard-fought victory against Edgars Skrivers,” the PMMAF said.
“The intense showdown unfolded on Friday in Miami, captivating audiences with its electrifying energy and showcasing the best of competitive spirit.”
The statement said Rind delivered an “extraordinary” performance that kept his fans excited throughout the match, adding that his “dedication, relentless training, and remarkable skill” had solidified his position as one of the top contenders.
“Rind’s triumph is a testament to the power of perseverance and hard work,” the sports body said. “As fans celebrate this incredible achievement, they eagerly await what the future holds for this rising star.”
The Pakistan Embassy in New York congratulated Rind on defending his title.
“Heartfelt congratulations to MMA fighter Shahzaib Rind, the brave son of Pakistan who hails from Balochistan, on defending his lightweight title in Miami, Florida, USA and becoming the world champion for the second time,” the embassy said on X. “Shahzaib Rind dedicated his victory to the people of Pakistan.”
Rind boasts a combined Wushu and Kickboxing record of 75-4, the majority of which was attained while training himself by watching YouTube videos. He is currently training under Asim Zaidi at the renowned Goat Shed gym in Miami.
Zaidi is the president of Karate Combat, a brand that promotes the first professional full-contact karate league, hosting worldwide events since April 2018.
Pakistan sacks 18% railways employees in bid to implement IMF reforms in state entities
- Pakistan’s Prime Minister Shehbaz Sharif chairs review meeting on Pakistan Railways performance
- IMF has pressed Pakistan to improve governance in state-owned assets for financial bailouts
ISLAMABAD: Pakistan Railways has sacked 18% of its “unnecessary staff” in a bid to improve the state-owned asset’s performance, Prime Minister Shehbaz Sharif was briefed on Monday according to a statement from his office, as Islamabad moves to implement ambitious reforms mandated by the International Monetary Fund (IMF) in exchange for a financial bailout.
Improving governance in loss-making state-owned enterprises (SOEs) has long been on the IMF’s list of recommendations for Pakistan, which has turned to the international lender for frequent financial bailouts, the latest of which was a $7 billion loan last year. Pakistan’s prolonged economic crisis has forced the country to implement an ambitious reforms program designed by the IMF, which includes privatizing public sector organizations and laying off unnecessary staff to enhance their revenue.
Pakistan’s SOEs have accumulated losses in the billions over the years due to mismanagement, operational challenges, high debt loads, inefficiencies and alleged corruption. Pakistan’s railways sector has also been poorly managed over the years, with the country witnessing several train accidents over the past few years due to decades-old signal systems and tracks.
Sharif chaired a meeting to review the railway sector’s performance on Monday which was attended by senior cabinet ministers and officials, the Prime Minister’s Office (PMO) said in a statement.
“As part of the Pakistan Railways rightsizing process, 18% of unnecessary staff has been laid off,” Sharif was briefed during the meeting, according to the PMO.
Sharif issued instructions to Pakistan Railways to attract passengers in a competitive manner, calling on the organization to provide better travel services to passengers through public-private partnerships.
He also instructed railways to hire professional and capable manpower, and replace its old system with modern technology that is more in line with today’s age, the PMO said.
Sharif was briefed that the railways suffered losses of Rs10 billion during the devastating floods of 2022, during which most of its tracks remained underwater for 35 days.
“Pakistan Railways improved its performance through various measures after the 2022 floods and has so far earned a profit equal to the initial cost of its freight operations,” the PM was told.
The Pakistani premier urged railways to use its land for business activities in collaboration with the private sector, directing it to formulate a strategy to increase trade in the region, especially with Central Asian countries.
Chinese official criticizes Pakistan’s ‘false rhetoric’ on economic corridor, raises ‘serious’ security concerns — report
- Shengjie says Pakistan’s rhetoric has given “unrealistic expectations” to locals
- Recent attacks have forced Beijing to publicly criticize Pakistan over security lapses
ISLAMABAD: China’s political secretary to Islamabad, Wang Shengjie, has criticized Pakistan’s “false rhetoric” around projects that are part of a joint multi-billion-dollar economic corridor, expressing “serious concerns” over the scheme’s future due to security challenges, a recent report in the Guardian newspaper said.
Beijing has pledged to build energy, infrastructure and other projects as part of the over $60 billion China-Pakistan Economic Corridor (CPEC) scheme launched in 2015 as a flagship of President Xi Jinping’s Belt and Road Initiative to grant China access to trade routes in Asia and Africa.
Recent attacks, including one in October 2024 in which two Chinese workers were killed in a suicide bombing in the Pakistani port city of Karachi, have forced Beijing to publicly criticize Pakistan over security lapses and media has widely reported in recent months that China wants its own security forces on the ground to protect its nationals and projects, a demand Islamabad has long resisted.
Progress on the economic corridor has been slow, particularly in the restive southwestern Balochistan province where China is building a deep-sea port and last week opened Pakistan’s largest airport in the coastal town of Gwadar, among other mega projects. Ethnic separatist groups target Chinese interests in the area, blaming both the governments in Pakistan and China of exploiting the province’s natural resources and neglecting the local population, allegations both Beijing and Islamabad deny. Gwadar residents have held intermittent protests for months, saying Chinese projects in the area have not improved the lives of the local population.
In a report published in the Guardian on Sunday, Shengjie spoke about enduring security challenges in Pakistan.
“Shengjie accused the Pakistani government of using ‘false rhetoric’ around CPEC projects, which had given unrealistic expectations to locals,” the Guardian reported on Sunday,
“We don’t work in rhetoric like Pakistan – we just focus on development,” he was quoted as saying. “If this kind of security situation persists, it will hamper development.”
The report said the Chinese official expressed “serious concerns” over the future of CPEC due to security challenges.
“If the security is not improved, who would come and work in this environment? There is hatred against the Chinese in Gwadar and Balochistan,” Shengjie was quoted as saying . “Some evil forces are against the CPEC, and they want to sabotage it.”
Pakistan has repeatedly assured China it would protect its nationals in the country from militant outfits and has tightened security protocols for Chinese investors and nationals. Islamabad says attacks on Chinese nationals are an “international conspiracy” to sour ties between the two longtime allies.
Pakistan condemns attack on Saudi Hospital in Sudan, killing at least 70
- War between Sudan’s army and Rapid Support Forces broke out in 2023 due to disputes over integration of two forces
- Conflict has killed tens of thousands, driven millions from their homes and plunged half of the population into hunger
ISLAMABAD: Pakistan on Monday condemned a drone attack that killed at least 70 people at the Saudi Teaching Maternal Hospital in the city of El-Fasher in Sudan, the foreign office said.
The war between Sudan’s army and the Rapid Support Forces (RSF), which broke out in April 2023 due to disputes over the integration of the two forces, has killed tens of thousands, driven millions from their homes and plunged half of the population into hunger.
The conflict has produced waves of ethnically driven violence blamed largely on the RSF, creating a humanitarian crisis.
“The attack leading to unfortunate deaths reportedly of seventy people clearly violates international law and puts innocent civilians at grave risk. Pakistan extends its deepest sympathies to the victims and their families,” the foreign office said about the attack on the Saudi hospital.
“This attack underscores the urgent need for upholding the sanctity of health care facilities and adherence to the principles of international humanitarian law.”
The foreign office urged the resolution of the Sudanese conflict through dialogue and diplomacy, while affirming “full support for the unity, sovereignty and territorial integrity of Sudan.”
Darfur Governor Mini Minnawi said on X that an RSF drone had struck the emergency department of the Saudi hospital in the capital of North Darfur, killing patients, including women and children.
Fierce clashes have erupted in El Fasher between the RSF and the Sudanese joint forces, including the army, armed resistance groups, police, and local defense units.
Last week, the RSF issued an ultimatum demanding army forces and allies leave El Fasher city in advance of an expected offensive.
