ECC approves bonded storage of imported petroleum products
ISLAMABAD: In view of recent supply disruptions following the closure of the Strait of Hormuz, the government on Monday formally approved allowing foreign fuel suppliers to establish bonded storage facilities in Pakistan at their own expense for multiple purposes, including re-export and supplies to the domestic market. Subject to formal ratification by the federal cabinet, the new policy…
The Pakistani government has officially approved the establishment of bonded storage facilities for imported petroleum products at the request of foreign suppliers. This policy change aims to bolster the country's energy security by addressing recent supply disruptions caused by the closure of the Strait of Hormuz. The Economic Coordination Committee (ECC) approved the guidelines during a meeting chaired by Finance Minister Muhammad Aurangzeb.
The decision comes after the Federal Board of Revenue (FBR) opposed the policy due to its own collection and monitoring challenges, but most other stakeholders backed the proposal. The approved guidelines will cover the import of various grades of petroleum products, including crude oil, motor spirit, diesel, jet fuel, furnace oil, liquefied petroleum gas, and liquefied natural gas.
Foreign suppliers can maintain inventories in private and public bonded storage facilities at approved ports, including Port Qasim Authority, KPT/Keamari, Hub, Gwadar Port, Mahmood Kot, Machike, Sheikhupura, and other designated ports. No duty or tax will be triggered by bonded pipeline movements, and goods declaration filing requirements will apply.
The policy is set to come into effect immediately, pending formal ratification by the federal cabinet.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
