External broker reports(aggregated public sources), Topline Securities

Topline Securities

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External broker reports(aggregated public sources)

Equity Bottom-Up

<ul><li>As per news reports, the Cabinet Committee on Energy (CCoE) has approved amendments to the Pakistan Oil Refining Policy 2023, removing the remaining impediments that had delayed execution of refinery upgrade agreements since the initial policy's notification in August 2023.</li><li>The policy had effectively remained in limbo after the Finance Act 2024 shifted major petroleum products from the zero-rated to the exempt sales tax regime, significantly weakening project economics by preventing refineries from claiming input sales tax on capital expenditure.</li><li>We view this development as positive for listed refineries, particularly PRL, NRL and ATRL, as it materially improves the visibility of long-delayed upgrade projects aimed at increasing Euro-V compliant fuel production and enhancing product yields.</li></ul>

As per news reports, the Cabinet Committee on Energy (CCoE) has approved amendments to the Pakistan Oil Refining Policy 2023, removing the remaining impediments that had delayed execution of refinery upgrade agreements since the initial policy's notification in August 2023.The policy had effectively remained in limbo after the Finance Act 2024 shifted major petroleum products from the zero-rated to the exempt sales tax regime, significantly weakening project economics by preventing refineries from claiming input sales tax on capital expenditure.We view this development as positive for listed refineries, particularly PRL, NRL and ATRL, as it materially improves the visibility of long-delayed upgrade projects aimed at increasing Euro-V compliant fuel production and enhancing product yields.

Topline Flash Note: Pakistan Refinery: Government Approves Proposed Amendments to Pakistan Oil Refining Policy, 2023