Pakistan to allow foreign oil suppliers to import, sell, and re-export petroleum products

Islamabad, Feb 08: The Government of Pakistan has announced plans to allow international oil suppliers to import, sell locally, and re-export petroleum products on their own accounts. This decision aims to enhance the country's fuel security and boost the economy.
The Federal Board of Revenue (FBR) is amending the Customs Rules 2001 by introducing new "Customs Bonded Facilitation Rules 2024." These rules will govern the operations of foreign oil suppliers in Pakistan.
Foreign suppliers can either set up their own registered businesses in Pakistan or operate through subsidiaries of existing Pakistani companies.
The imported petroleum products can be sold within Pakistan or re-exported to other countries.
Suppliers can store crude oil and other petroleum products in bonded warehouses for local purchase or re-export without requiring foreign exchange.
According to media reports, subsidiaries operating in Pakistan need to register with FBR and maintain a bank account in the country. For independent storage, an OGRA license is mandatory.
Security and surety bonds are required for imported products, ensuring compliance with regulations.
The FBR is currently seeking feedback from stakeholders on the proposed rules. They have 15 days to submit their suggestions and objections before the final rules are notified and implemented.
This move is expected to attract foreign investment and enhance Pakistan's access to diverse fuel sources.
Increased competition could lead to more competitive fuel prices and improved availability.
The government hopes to generate additional revenue through taxes and levies.
Ensuring transparency and compliance with regulations will be crucial.
The impact on local refineries and existing players in the petroleum sector needs careful consideration.