Special Assistant to PM on Power and Petroleum Tabish Gauhar has said that the government is close to updating the Refinery Policy to incentivise existing refineries to upgrade and modernise their facilities. Taking to his Twitter handle, Special Assistant to PM on Power and Petroleum said that the Refinery Policy will also encourage setting up of new deep-conversion refining-cum-petrochemical assets to further reduce Pakistan’s dependence on imported POL products. He shared the highlights of his meeting with UAE’s Ambassador Hamad Alzaabi, where they discussed various existing opportunities in Pakistan’s petroleum sector, particularly the proposed PARCO Coastal Refinery project. The government has decided not to extend guarantees for offtake of POL products from the new refineries. And more importantly the government will also not provide the guaranteed rate of return on the equity and will not ensure internal rate of return as well. The refineries, however, would be free to market their products through their own or other marketing companies or make exports after meeting the local needs. However, for new refineries, there will be a 20-years tax holiday and for up-gradation and modernisation of the existing refineries, a 10 years tax holiday will be extended. This is part of the new refinery policy draft in circulation among the stakeholders and various economic ministries following which it will be forwarded to the Economic Coordination Committee for approval.