Pakistan, June 13 -- Pakistan's plans to upgrade its oil refineries hit a roadblock after the IMF rejected key government proposals linked to tax relief. The proposals were designed to support $6 billion in investment aimed at producing cleaner, Euro-V standard fuels. This decision has stalled the upgrade projects, according to officials from the Petroleum Division.

The government had included these proposals in the Finance Bill for FY26, seeking to remove a sales tax exemption introduced last year. That exemption caused a Rs34 billion loss to refineries and oil marketing firms. However, the IMF dismissed the plan, frustrating energy officials and Petroleum Minister Ali Parvaiz Malik, who raised the issue with Prime Minister Shehbaz Shar...