Pakistan Planning to Build Huge ‘Bonded Storage Facilities’

ECC has already approved a plan to establish bonded storage facilities in Pakistan, at the expense of foreign suppliers, for multiple purposes, including re-export and supplies to the domestic market.

Pakistan is planning to build huge bonded storage facilities in port areas of Sindh province with the help of foreign fuel suppliers, from where it would be able to export crude oil, petrol, diesel and other petroleum products.

Advisor to the Finance Ministry Khurram Shahzad said in a private TV programme today that if bonded storage facilities are built in the coastal areas of Sindh, there would be no shortage of fuel even if the war in the Gulf states continues.

In this connection, the Economic Coordination Committee (ECC) had already approved a plan for bonded storage facilities in Pakistan, at the expense of foreign suppliers, for multiple purposes, including re-export and supplies to the domestic market.

Without naming the Middle Eastern countries, he said all stakeholders supported the Petroleum Minister’s proposal to proceed with bonded warehouses and engage with key suppliers in the Middle East.

The guidelines were approved at a meeting of the federal cabinet’s Economic Coordination Committee, chaired by Finance Minister Muhammad Aurangzeb on August 23, 2026, in Islamabad.

The ECC “approved a summary with the proposal of the Petroleum Division to allow the import of petroleum products on foreign suppliers’ accounts through Customs bonded storage facilities,” a statement issued after the meeting said.

“The proposal focused on the development and strengthening of the key pillars of the country’s energy security architecture in the oil and gas sector, including indigenisation, the development of strategic petroleum reserves and the promotion of Customs bonded storage facilities to ensure a resilient and sustainable petroleum supply chain,” the official statement issued after the meeting said.

Subject to formal ratification by the federal cabinet, the new policy guidelines on “Import on Foreign Supplier’s Account through Customs Bonded Storage Facilities” will come into force immediately. The guidelines have been pending since June 2023, the statement said.

The policy guidelines cleared by the ECC would cover the import of all grades of crude oil, motor spirit (petrol), high-speed diesel (HSD), jet fuel, furnace oil, liquefied petroleum gas (LPG) and liquefied natural gas (LNG) on foreign suppliers’ accounts through Customs bonded storage facilities in Pakistan. The imports would be subject to product specifications approved by OGRA.

The policy would not, however, cover goods subject to international sanctions binding on Pakistan or those listed in the Negative List of the Import Policy Order, 2022.

The policy covers domestic sales to oil marketing companies (OMCs) and refineries. Foreign suppliers would be able to maintain bonded inventories for local sale at private and public bonded storage terminals, including dedicated storage terminals, at approved locations such as Port Qasim Authority, KPT/Keamari, Hub and Gwadar Port, as well as any other designated ports, including Mahmood Kot and Machike, Sheikhupura, the statement added.

For imports into bonded storage and re-export, both private and public bonded storage terminals at ports would be approved locations, including those at Port Qasim Authority, KPT/Keamari, Hub and Gwadar Port, as well as any other designated ports, subject to compliance with the relevant laws and regulations of the respective port, marine and other regulatory authorities.

Foreign suppliers, through their consignees, would have access to the national petroleum pipeline network to move bonded inventory from approved port-based locations to inland locations, such as Mahmood Kot and Machike, Sheikhupura, for local sale to licensed OMCs and refineries.

No duty or tax would be triggered by such bonded pipeline movements, while goods declaration (GD) filing requirements would apply.

These guidelines will not affect or alter the existing regime for imports of petroleum products by licensed OMCs and refineries on their own account. The existing OMC import regime will continue unchanged and in parallel with this initiative.

Foreign suppliers, through their consignees, will be allowed to maintain inventories of crude oil and other aforementioned products in private and public bonded storage facilities, including dedicated storage terminals.

Meanwhile, foreign suppliers or their consignees will have the option to develop their own dedicated storage infrastructure or utilise private or public bonded warehouse facilities and dedicated storage terminals, subject to the relevant regulatory approvals under the Customs Act, 1969, and from the relevant port authorities.

The consignee’s bonded storage facility—whether a public bonded warehouse, private bonded warehouse or dedicated storage terminal—will have to be licensed by Customs after fulfilling the requirements for operating as a bonded warehouse.

Additionally, they will not be required to register with the FBR under the Sales Tax Act, 1990, as a condition for commencing operations under this policy.

For domestic sales of bonded goods to OMCs, all sales tax obligations—including registration as an importer under the Sales Tax Act, 1990, filing of returns and payment of sales tax—would apply to and rest solely with the OMC or refinery as the importer of record at ex-bonding.

The foreign supplier and the consignee would have no sales tax registration requirement, return-filing obligation or liability to pay sales tax in respect of domestic sales.

Under the policy guidelines, concessions would be granted to the consignee and the foreign supplier to ensure that they remain tax-neutral in Pakistan in respect of bonded storage, blending, trading and re-export operations.