Pakistan to Create New Gateway for Global Oil Suppliers

Pakistan is preparing a new policy framework that would allow international oil suppliers to bring petroleum products into the country, store them in customs-bonded facilities and either sell them to local oil marketing companies and refineries or re-export them.

 

The proposed Policy Guideline on Import on Foreign Suppliers’ Account through Customs Bonded Storage Facilities-2026 is designed to attract foreign energy suppliers while strengthening Pakistan’s ability to maintain petroleum stocks during supply disruptions.

 

The 168-page policy has been forwarded by the Petroleum Division to the Economic Coordination Committee (ECC) for approval. It covers major energy commodities, including crude oil, petrol, high-speed diesel, jet fuel, furnace oil, LPG and LNG.

 

Under the proposed framework, foreign suppliers would be able to keep petroleum inventories in bonded storage without immediately paying domestic duties and taxes. This would give them greater flexibility to either supply the Pakistani market when commercially viable or redirect their stocks to international markets.

 

Bonded storage facilities could be established at key locations including Port Qasim, KPT/Kemari, Hub, Gwadar, Mahmood Kot and Machike Sheikhupura, subject to regulatory and safety requirements.

 

The framework could make Pakistan more attractive to suppliers from major oil-producing countries, particularly Kuwait and Saudi Arabia, by allowing petroleum cargoes to be stored locally on the supplier’s account rather than requiring an immediate domestic sale.

 

Foreign suppliers could operate through registered liaison offices, local branches or incorporated companies acting as consignees. They would also have the option of developing dedicated storage facilities or using licensed public and private bonded warehouses.

 

The policy could potentially transform Pakistan from a destination market into a regional petroleum storage and trading hub. Suppliers would be able to bring products into the country, hold them under customs bond, sell them domestically when market conditions are favourable or re-export them.

 

The framework would also allow bonded petroleum products to be transported through Pakistan’s pipeline network from ports to approved inland storage locations, including Mahmood Kot and Machike Sheikhupura, without triggering duties or taxes while the products remain under bond.

 

Products could also be moved between approved storage facilities, pipelines, refineries, ports and export terminals under customs supervision while retaining their bonded status.

 

For foreign suppliers, the proposed system offers significant commercial flexibility. Petroleum products would remain largely tax-neutral while they are held under the bonded regime, with duties, levies and other applicable charges becoming payable only when goods are released for domestic consumption.

 

The policy would also preserve suppliers’ ability to re-export bonded petroleum products, except for internationally sanctioned goods or items included on the applicable Negative List.

 

For Pakistan, the arrangement could improve energy security by increasing the volume of petroleum stocks physically available inside the country without requiring the government or local companies to immediately purchase and finance the entire inventory.

 

It could also allow suppliers to position stocks closer to major consumption centres rather than keeping inventories concentrated at ports. This could reduce reliance on the timely arrival of individual oil cargoes and provide greater flexibility during international supply disruptions.

 

Overall, the proposed framework aims to combine foreign investment, greater storage capacity and re-export flexibility, potentially positioning Pakistan as a strategic regional hub for petroleum storage and trading while improving the country’s energy-supply resilience.