·         PM’s CCoE approved amendments to the Pakistan Oil Refining Policy 2023 (Brownfield Policy) on July 28th, directing its swift implementation.

·         The latest amendments extend the fiscal incentive window from 6 to 7 years, increase escrow withdrawal caps and introduce enforcement clauses in order to unlock the US$6bn investment plan.

· With regard to beneficiaries, financing economics are expected to favor ATRL; however, PRL offers the largest turnaround upside amid sovereign backing.

·         We estimate US$600mn in annual FX savings once refineries complete their upgrades, as substitution of imports of finished MS/HSD for cheaper crude oil shipments takes place, capturing the GRM currently lost to foreign refiners.

Full Report

https://research.akdsl.com/639209428454613133.pdf

Courtesy : AKD Research