Sales tax exemption introduced in the Finance Act of 2024 led Pakistan's oil industry to financial challenges. The exemption, which applies to petrol, high-speed diesel, kerosene, and light diesel oil, has led to an additional Rs25 billion in operational costs for the industry during the current fiscal year. The exemption forbids the equivalent input tax claims that oil companies would typically recover, increasing their operational expenses. This policy change could negatively affect the financial viability of critical industry projects, such as upgrades, infrastructure development, and ongoing operations. Continuous exemption led to the reduce profitability and hinder the ability of oil companies to invest in capital-intensive projects necessary to maintain a stable petroleum supply chain in the country. In addition to the sales tax exemption the industry, including petroleum product smuggling, high financing costs, elevated turnover taxes, and insufficient margins for Oil Marketing Companies (OMCs). These issues have compounded the financial difficulties, and the industry has called for reforms to ensure its continued viability.

The upcoming inaugural session of the Pak-Czech Joint Ministerial Commission (JMC), scheduled for April 28-29, 2025, in Islamabad, is set to play a pivotal role in strengthening the economic ties between Pakistan and the Czech Republic. To ensure a productive and focused discussion, both sides have agreed to form sector-specific Joint Working Groups (JWGs) ahead of the JMC. The JMC is bilateral relations, with the goal of realizing long-term economic and industrial benefits for both countries. The focus areas for collaboration include renewable energy, information technology, healthcare, nanotechnology, agro-technology, mining, and green technologies, all of which present significant opportunities for growth and innovation. This partnership could offer considerable benefits, given the complementary strengths of both nations—Czech expertise in technology and innovation and Pakistan’s strategic location as a gateway between South, Central, and East Asia, with access to the Middle East. Pakistan’s geographical position offers immense potential for collaboration with the Czech Republic, making it a favorable partner for the Czech Republic, located at the heart of Europe. The partnership is a promising avenue for expanding cooperation in diverse sectors, laying the groundwork for mutually beneficial trade, investment, and industrial cooperation.

Oil and Gas Development Company Limited (OGDCL) has announced gas and condensate discovery in the Samanasuk formation, located at the Bettani-02 (Slant) well in District Laki Marwat, Khyber Pakhtunkhwa Province. This discovery is the first-ever hydrocarbon find in the Samanasuk formation within the Wali Exploration License. OGDCL, which holds a 100% working interest as the operator of the Wali Exploration License, initially drilled the Bettani-02 (Slant) well as an appraisal well, reaching a depth of 5,080 meters into the Shinawari formation. During the drilling process, the well penetrated a 247-meter-thick Samanasuk formation. A Cased Hole Drill Stem Test (DST-1) was conducted, and the well demonstrated a flow rate of 2.14 million Standard Cubic Feet per Day (MMSCFD) of gas along with 74 barrels of condensate per day, using a 32/64” choke and a wellhead flowing pressure of 435 psi.

A historic rail link between Pakistan and Russia is set to become a reality, with the inaugural test cargo train expected to arrive in Pakistan by March 2025. The train will travel through Turkmenistan and Iran, entering Pakistan via the Taftan border, marking a milestone in enhancing bilateral trade between the two nations. The journey from Russia to Pakistan is expected to take approximately 2-3 weeks, utilizing existing rail connections such as the Turkmenistan-Iran railway and the Zahedan-Mirjaveh railway, which links Iran and Pakistan. The Taftan station in Pakistan will serve as the key entry point for goods traveling along the route. The rail link promises to provide a more efficient and cost-effective transportation route, which is expected to boost trade in energy resources, agricultural products, minerals, machinery, and consumer goods. Russia will gain direct access to export oil, natural gas, steel, and other industrial goods to Pakistan, while Pakistan will be able to access Russian markets for textiles, food products, and agricultural goods, including rice, wheat, and cotton.