Refining sector’s exports amounted to nearly 3.5% of the country’s total merchandise exports; Parco leads with $277 million in exports, Cnergyico follows with $258 million.

Pakistan’s oil refining industry has surpassed the $1 billion export threshold for the first time, with the country’s five major refiners collectively earning an estimated $1.046 billion in FY26 — emerging as an unexpected contributor of foreign exchange at a time when the merchandise trade deficit has swelled to nearly $40 billion, according to a news report. 

Parco topped the list with around $277 million in exports, followed closely by Cnergyico PK Limited at approximately $258 million, together accounting for $535 million, or more than half of the sector’s total export proceeds. 

National Refinery Limited added about $238 million, Pakistan Refinery Limited contributed roughly $200 million, and Attock Refinery Limited brought in close to $73 million.

The refining sector’s export earnings amounted to nearly 3.5% of Pakistan’s total merchandise exports of $30.139 billion for FY26.

The milestone stands out against a backdrop of deteriorating trade fundamentals. Merchandise exports fell by about 5.9% year-on-year, dropping from $32.04 billion in FY25 to $30.139 billion, while imports climbed to roughly $69.76 billion — widening the merchandise trade deficit to around $39.62 billion. 

Against that backdrop, the refining sector’s billion-dollar export haul marks a meaningful foreign-exchange contribution from an industry more typically associated with driving up the country’s petroleum import bill.

A key factor behind the export surge has been the steep drop in domestic furnace-oil consumption, largely due to the power sector scaling back its use of the fuel.

Since refineries produce several petroleum products simultaneously, they cannot halt furnace-oil output while continuing to manufacture petrol, high-speed diesel, jet fuel and other products. As domestic demand for furnace oil has weakened, refiners have periodically faced inventory buildups, at times forcing them to cut crude-processing rates or even shut down units entirely.

Exporting the surplus has served as a pressure valve, allowing refiners to clear excess stock, sustain crude throughput and keep supplying essential fuels to the domestic market. In response, the Oil and Gas Regulatory Authority (OGRA) has permitted refineries to export surplus furnace oil, provided they maintain sufficient reserves for local consumption.

A representational image showing Pakistan Petroleum Limited (PPL) workers working at a plant in this image. — PPL website/File

KARACHI: Pakistan Petroleum Limited (PPL) on Monday announced a gas and condensate discovery from its operated Dolphin X-1 exploratory well in the Sirani Block in Sujawal district, Sindh, describing it as the first hydrocarbon discovery from the Jurassic-age Chiltan Formation in the Lower Indus Basin.

PPL said the discovery establishes a working petroleum system and opens a new exploration play across the onshore marshy area, with potential extensions into shallow offshore areas. The company said the development can further improve the prospectivity of Pakistan’s shallow offshore.

The area had long been considered difficult to explore because of its geographical location and marshy terrain. PPL said it is the first exploration and production company to overcome the terrain and deploy specialised transition equipment to acquire 2D and 3D seismic data, turning the previously unexplored area into a proven petroleum play.

Dolphin X-1 was spudded on April 17, 2026, and drilled to a measured depth of 3,850 metres to assess the hydrocarbon potential of the Chiltan Formation.PPL said a hydrocarbon-bearing zone is identified from drilling results and wireline logs. During testing, the Chiltan Formation flowed gas with a heating value of about 1,000 British thermal units per standard cubic foot (Btu/scf) at a rate of 0.942 million standard cubic feet per day (MMscfd), at a wellhead flowing pressure of 211 pounds per square inch gauge (psig) through a 32/64-inch choke.

PPL operates the Sirani Block with a 75 per cent working interest, while Government Holdings (Private) Limited (GHPL) holds the remaining 25 per cent. The well was drilled and tested using local expertise and has identified a new hydrocarbon play within the Chiltan Limestone, PPL said.

The company acknowledged the Pakistan Navy’s support during the project.Preliminary geological, geophysical and engineering data indicate that the reservoir is tight, PPL said. The assessment will require further evaluation of geological and geophysical data and reservoir engineering information gathered during drilling and testing.

Source: The News

Academics at Northumbria University have secured nearly £1.25 million in UK government funding to build Pakistan’s first full-scale plant that will convert agricultural waste into clean energy.

The university’s School of Engineering, Physics and Mathematics is leading the Safer Plus project, which will convert cotton stalks and sugarcane waste into bio-coal pellets through a heating process known as torrefaction.

Farmers burn millions of tonnes of agricultural waste across Punjab every year, contributing to air pollution and seasonal smog. The project will turn the waste into fuel while creating new income opportunities for rural women.

A women led biomass cooperative will collect and supply the agricultural waste. More than 120 households near the plant will receive formal payments for material that farmers currently pay to dispose of. The project will reserve at least 60% of its training places for women and send payments directly to their mobile wallets.

The bio-coal pellets could replace imported coal in brick kilns and textile mill boilers at 40% to 50% lower cost. Pakistan spends more than $2.5 billion annually on coal imports for industrial use, according to project lead Dr. Jibran Khaliq.

Three Pakistani textile manufacturers have signed letters of commitment to test the bio-coal as boiler fuel. The project aims to turn six years of research into a commercial facility that Pakistan can replicate and expand.

Source: ProPakistani

United States on Wednesday offered help in Pakistan’s energy sector and said the details of the projects where economic cooperation could be enhanced are being worked on. Wilbur Ross, Secretary Commerce of the United States of America, made these remarks in a meeting with Adviser to the Prime Minister on Finance and Revenue Abdul Hafeez Shaikh here at the Finance Division.
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In line with the mutual desire on the part of both US and Pakistani leadership to intensify economic engagement with particular focus on trade and investment, Wilbur Ross, undertook a bilateral visit to Islamabad on 26th February, 2020. The said visit was outcome of recently held discussions of Prime Minister Imran Khan and President Donald Trump to promote bilateral trade and enhanced economic engagement.

The adviser welcomed the secretary commerce and said that Pakistan and United States had maintained a durable relationship over the years and there was a need to build it further. The Adviser said that the arrival of the delegation from the commerce sector is good news for Pakistan and would have positive consequences for the country. “This is at a time when the government is looking forward to a major boost in exports after offering concessions to the export oriented sector of Pakistan.”

The adviser said that Pakistan was trying to carve out a new progressive image in the comity of nations. “We have tried to follow the FATF action plan to a significant level, opened our markets to the foreign investors by providing ease of doing business and we are trying to build our image as a tourism-friendly and investment-opportunity country in the region.” The adviser also shared the updates on the economy with the US Secretary of Commerce. He said that though the country is trying to revive the economy through stabilization reform and inviting foreign investment to the country as well as taking care of its vulnerable, the rising prices of food items, high energy prices and slow revenue generation were issues that concerned him.

He said that the government’s efforts are directed towards providing ease to the common man and it would require guidance from its global partners as well. The trade between the two countries is only around $7 billion and the country has an urgent need to increase that to help in GDP growth which requires long term planning for economic development. He said that we have made a mistake in the past of not forming our alliances on the economic front based on our developmental requirements. He felt this was the time to enable the relationship to become more long lasting on a firm footing. The Adviser said that he hopes that a healthy interaction shall continue in future as well.
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US Secretary Commerce also met Abdul Razak Dawood, Advisor to Prime Minister on Commerce, Industries & Production and Investment. The issues related to bilateral trade and enhanced market access to Pakistan were discussed. The Adviser told the visiting delegation that after achieving economic stability, the government under the leadership of Prime Minister Imran Khan is now focusing on job creation and export augmentation by encouraging foreign investments. He suggested that this is high time for US companies to invest in Pakistan. He also took up the issue of early convening of the long awaited 9th session of Trade and Investment Framework Agreement (TIFA) meeting as well as the visit of US business delegation to Pakistan to participate in the Business Opportunities Conference in order to forge a better networking among the private sectors of both countries. The adviser also suggested that the U.S. International Development Finance Corporation (IDFC) should help in developing of new businesses in Pakistan. Wilbur Ross said that his visit to Pakistan is part of his government’s desire to increase trade relations with Pakistan. He also believed that such links between both the counties would not only enhance trade but encourage further expansion of ties in all fields of economic engagement. About IDFC assistance, Secretary Ross sounded positive and suggested that Ministry of Commerce should propose projects in this regard.

US Secretary of Commerce also called on Minister for Energy, Omar Ayub Khan. The energy minister gave an overview of Pakistan’s energy sector and the present government’s earnest endeavours in reforming this sector. These efforts are being personally overseen by the Prime Minister of Pakistan himself. Omar Ayub Khan called for greater US investment in energy sector including areas such as power generation, transmission and distribution, artificial intelligence, renewable energy, hydel energy and training opportunities.

The minister also reaffirmed Pakistan’s commitment to cleaner fuels and green energy. The Special Assistant to Prime Minister on Petroleum, Nadeem Babar informed the visiting side on key actions taken to improve ease of doing business in Pakistan. SAPM also shared how more US investments could be incremental in improving the business relations between both the US and Pakistan. Wilbur Ross said his visit to Pakistan is part of the US government’s desire to increase trade links with Pakistan. He also believed that such links between both the counties would not only enhance trade but encourage further expansion of ties in all fields. Both the sides agreed to step up cooperation in the energy sector.

Source: nation.com.pk

As the government of Pakistan moves to divest shares of local companies, it has invited Malaysia, and its strategic partners, to participate in the process as well as to look at the LNG infrastructure development opportunities. The government also invited their participation in the auction of oil and gas blocks.

Federal Minister Omar Ayub Khan invited Malaysian investors to fully participate in the auction of oil and gas blocks that will be offered to foreign investors shortly with 18 initial blocks in the first phase.

He said this during a meeting with High Commissioner of Malaysia Ikram Muhammad Ibrahim, who called on the minister and Special Assistant to Prime Minister (SAPM) on Petroleum Nadeem Babar on Monday.

Babar also shared the possibility of Petronas acquiring divested shares from the Oil and Gas Development Company (OGDCL), Pakistan Petroleum (PPL) and Mari Petroleum that will be divested to shared partners. He encouraged Petronas to also look favourably at LNG infrastructure development opportunities in Pakistan. He was of the view that Malaysian investors can benefit in areas such as LPG, refinery upgrade etc.

The high commissioner apprised the minister and SAPM about preparations being undertaken for the upcoming visit of Prime Minister Imran Khan to Malaysia. Both the government officials also apprised the envoy about the structural reforms being carried out in the energy sector of the country, with a special focus on ensuring ease of doing business.

While applauding the initiatives, Ibrahim said that Malaysia considered Pakistan in general and particularly the energy sector as having great potential. He was also optimistic on Petronas establishing a strong presence in Pakistan in a cross section of the country’s energy industry.

Divestment of OGDCL’s shares

The government has recently short-listed financial advisers for the divestment of shares. Earlier, rumours pertaining to the transaction led to a plunge in OGDC’s stock price. There had been rumours that the government would offer shares for divestment at a discount of 10%. The finance ministry took strong notice of the situation and also conveyed its concerns to the Privatization Commission and the Securities and Exchange Commission of Pakistan (SECP).

“Following such a situation, the government should offer shares to strategic partners like exploration companies that would also make investment in exploration activities,” background discussions with officials revealed.

The Privatization Commission is in process of finalising appointment of a financial adviser for divestment of up to 7% of its shares in OGDC to meet conditions of the International Monetary Fund (IMF).

It is worth mentioning that in 2014, the Pakistan Tehreek-e-Insaf government in Khyber-Pakhtunkhwa had challenged the Pakistan Muslim League-Nawaz (PML-N) government’s decision of selling 10% shares in OGDC at Rs210 per share or $2 per share in the Peshawar High Court. At the time, the PML-N had appointed the Bank of America Merrill Lynch, Citigroup, and Pakistani broker KASB Securities as financial adviser for execution of the deal. The Privatization Commission had also approved the minimum price/floor price of Rs216 per share for the transaction.

Now, the same commission is working on a lower price with almost same profitability of the company as seen in 2014. The commitment from foreign investors to buy complete 10% share at Rs205 per share remained unmaterialised due to strong protest from the opposition.

The company’s profitability at that time was almost same as in current scenario but this time due to the deteriorating economic conditions it is currently trading at a significantly lower price than its fair value.

OGDC had reported a net profit of Rs124 billion and Rs87 billion in 2014 and 2015, respectively. In 2019, the company reported a profit of Rs119 billion. Moreover, the previous government had offered the share at price-to-earning/price-to-book 8.1/2.3 and now the current government was offering it at PE/PB 5.2/1.0. If the deal is executed at these levels it will cost losses worth Rs20 billion to the national exchequer, said officials.

In order to meet the IMF requirements, the government is also looking for government-to-government deals and has offered Russia, China and Saudi Arabia strategic partnership in OGDC and PPL. Given the strategic importance, it would be more beneficial for Pakistan if a government-to-government deal happens that will bring operational efficiencies in these companies and by increasing exploration activity in un-penetrated areas it will reduce significant reliance on petroleum products imports, said officials.

OGDC is currently trading at a significant discount to its fair value. In a recent strategy report published by Foundation Securities, a Karachi based brokerage house, that have reported that fair value of OGDC would be around Rs242.8 per share in December 2020.

By selling OGDC shares in the stock market it will decrease the government’s shareholding, which is around 85% to 78% and will increase shareholding of private parties. It will also allow them to appoint a director on the board as OGDC has 10 board of directors and will require 10% vote for director appointment, officials said.

Source: Tribune.com.pk

The Federal Board of Revenue (FBR) has granted concessionary rate of customs duty or zero percent duty on the import of 6,786 items from China with effect from January 1, 2020. The FBR has issued SRO 1640(I)/2019 here on Tuesday in supersession of notification SRO 659(I)/2007, dated the 30th June, 2007.

According to the SRO 1640(I)/2019, in exercise of the powers conferred by section 19 of the Customs Act, 1969, and in supersession of notification SRO 659(I)/2007, dated the 30th June, 2007, the federal government has exempted, with effect from January 1, 2020, unless specified otherwise, the import into Pakistan from China of the goods specified from so much of the customs duty specified in the First Schedule as on the 1st January, 2020.

Provided that the goods are manufactured or produced and imported in conformity with the Rules of Determination of Origin of Goods and the operational certification procedures for the Rules of Origin notified by the Ministry of Commerce vide SRO 1286(I)/ 2005, dated 24th December, 2005 read with the Import Policy Order, 2016.

The reduced rate of duty, fixed rate or zero percent duty would be applicable on the import of crude oil (Rs 8000/MT), palm stearin (Rs 9050/MT), RBD Palm oil (Rs 10800/MT), palm olein (Rs 9050.0/MT), pure breeding animals, meat of goats, fish, yogurt, whey powder, butter, dairy spreads, cheese, honey, vegetables, mushrooms, green tea, black tea, rice, beverages, gold, silver, varnishes, artificial staple fibers, vehicles parts, satellite communication equipment, radio navigation apparatus, parts/accessories for cable TV/satellite receivers, energy saving lamps, cameras, energy saving tubes, components for the assembly/manufacture of vehicles in any kit form and other items specified in SRO 1640(I)/2019.

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• Bhit Photovoltaic Plant has a 10MW peak capacity and is expected to produce approximately 20GWh annually.
• The plant will allow to avoid 144,000 tonnes of CO2 equivalent emissions during its life.

Italian oil and gas giant Enihas inaugurated on Friday the Bhit Photovoltaic Plant in Pakistan, through its subsidiary Eni New Energy Pakistan.

This is Eni’s first solar project in the country. The plant, built in proximity to the Bhit Gas Plant, aims at supporting the upstream operations by providing green energy in an off-grid configuration.

As per the company statement, the Bhit Photovoltaic Plant has a 10MW peak capacity and is expected to produce approximately 20GWh (Gigawatt hours) annually. The output energy will be used on site, reducing gas consumption and avoiding around 144,000 tonnes of CO2 equivalent emissions during plant life.

The photovoltaic plant works in full synergy with the existing power generation system of Bhit gas treatment plant, optimising operational costs with the shutdown one of the existing gas turbines. Exploiting all the synergies in place with its presence, Eni has achieved a short time-to market, with a start-up reached only 6 months after the Final Investment Decision (FID).

“Bhit Photovoltaic Plant, while adding extra value to the traditional operations held in Pakistan, confirms Eni’s commitment towards a low-carbon scenario in which renewable energy plays a pivotal role and is fully integrated in the energy mix,” read the statement.

Earlier, Minister for Energy Omar Ayub said that Pakistan had investment potential of $40 billion in the sector of alternative energy. Pakistan in future could produce 75 percent of electricity from its own indigenous sustainable resources without importing fuel like oil and gas

Eni has been present in Pakistan since 2000 and operates in the upstream sector, where the main permits in the country are Bhit/Badhra (Eni operator with a 40% interest), Kadanwari (Eni operator with 18,42% interest), Latif (Eni 33,3%), Sawan (Eni 23.68%), Zamzama (Eni 17.75%) and Miano (Eni 15,16%). Eni is the Operator of three offshore blocks and is also active in the Midstream sector.

Source: www.brecorder.com