Islamabad: The government has decided to remove custom duties on imports of heavy machinery, a news source reported on Thursday. This machinery is being used for oil & gas exploration and development within the country. The decision, taken in a Prime Minister (PM) Imran Khan-chaired Federal Cabinet meeting, will help to increase local fuel production.
Companies seeking offshore oil & gas exploration and development in Pakistan will no longer have to deal with import duties. An official stated that this will attract multinational companies to Pakistan.
The decision will apply to all companies and joint ventures that are involved in any production-sharing agreement related to offshore petroleum exploration & production. Earlier, certain concessions were made for Italian oil and gas company, Eni, and the US-based ExxonMobil.
These companies plan to start offshore drilling this month in an ultra-deep well located on the offshore Indus-G Block (2265-1), also known as Kekra. The machinery required for exploration of gas reservoirs has arrived in Pakistan; awaiting customs clearance. Following the government’s decision, no customs duty will be levied, and machinery is expected to be cleared soon.