ECC approves "Bonded Bulk Storage Policy 2023" for petroleum products

Islamabad: Finance Minister Ishaq Dar announced the fulfillment of another promise made to the people, as the Economic Coordination Committee (ECC) granted approval for the "Bonded Bulk Storage Policy 2023" for petroleum products.

According to officials, the new policy removes the requirement for non-resident banks to open LCs (letters of credit) for oil marketing companies to purchase crude oil and petroleum products from Pakistani ports.

Under the policy, foreign oil suppliers will be able to store petroleum products in bonded storage at Pakistani ports.

The elimination of bank charges and other expenses related to petroleum imports will enable refineries and oil marketing companies to acquire oil at more affordable prices.

Officials emphasized that the policy has been developed in line with international banking practices and to reduce exchange rate pressures.

It will also facilitate the purchase of petroleum products in local currency.

Under the new policy, foreign oil suppliers will now release petroleum products only when LCs (Letters of Credit) are opened in specific banks.