Pakistan has approved a new plan for importing petroleum products through customs-bonded storage facilities. The Economic Coordination Committee (ECC) approved the proposal on Monday.
The initiative will allow foreign suppliers to bring petroleum products into Pakistan on their own accounts. These products can remain stored in approved bonded facilities under customs control.
The government says the policy will help strengthen energy security. It also aims to support strategic petroleum reserves and create a more resilient fuel supply chain.
Under the arrangement, foreign suppliers will retain their petroleum stocks within the bonded system. The products can later be sold to local buyers or re-exported under the proposed framework.
Petroleum Products Covered Under Plan
The policy covers several major petroleum products. These include crude oil, petrol, high-speed diesel, and jet fuel.
Furnace oil is also included in the proposed framework. Liquefied petroleum gas (LPG) and liquefied natural gas (LNG) are covered as well.
The government plans to allow bonded inventories at approved storage locations. These include Port Qasim, KPT and Keamari, Hub, and Gwadar.
Other approved locations include Mahmood Kot and Machike in Punjab. Foreign suppliers can also use port-based facilities for products intended for re-export.
Focus on Energy Security
Pakistan has been working to strengthen its fuel supply system. Recent regional disruptions have highlighted risks to petroleum supplies.
The Petroleum Division has identified bonded storage as part of its broader energy security strategy. The plan also includes developing strategic petroleum reserves.
The new system could allow fuel to remain available inside Pakistan during supply disruptions. Local companies could potentially purchase stored products instead of waiting for new shipments.
This arrangement could also improve the country’s role in regional fuel storage. Foreign suppliers may use Pakistan as a storage and distribution base.
Existing Import System to Continue
The new arrangement will operate alongside the existing import system. Licensed oil marketing companies and refineries will continue their current import activities.
Products will remain under the bonded regime until they are cleared for domestic use. Applicable duties and taxes would then become payable under the relevant procedures.
The framework excludes products covered by international sanctions. Items listed under Pakistan’s Import Policy Order will also remain excluded.
The government first approved a bonded storage policy in 2023. However, no foreign supplier had established a facility under that framework.
A review committee later examined the policy and consulted petroleum traders. Revised guidelines were subsequently prepared after feedback from several government institutions.
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The latest approval marks a renewed effort to operationalize the system. Pakistan is seeking to improve fuel security while developing a stronger petroleum supply chain.
