ISLAMABAD, Sept 1: Pakistan has imposed a five per cent import duty on equipment used in exploration and production of hydrocarbons in the country, a government official said on Wednesday.

In the past, Pakistan had zero rate of duty at the time of exploration and three per cent duty on equipment used in the production cycle. "Now there is a five per cent across-the-board duty on equipment used in exploration and production," G.A. Sabri, Director General of petroleum concessions at the ministry of petroleum and natural resources, said.

Another government official said the new duty structure, which would be in place immediately, had been adopted with the consent of industry players. "This change is in line with the government policy of having one tariff rate," said Abdullah Yusuf, Chairman of the Central Board of Revenue.

Industry executives said oil and gas exploration companies working in the country imported majority of their equipment from abroad. "This new duty structure can increase our costs by 10 per cent to 15 per cent," said an executive working in a foreign exploration firm.

Country's two state-run companies - Oil and Gas Development Company and Pakistan Petroleum Ltd - dominate the exploration scene in the country. But duty concessions and liberal policies have attracted a sizable interest from foreign companies in the past, making oil and gas the largest foreign investment area.

There are a number of foreign firms which have been involved in exploration and production of hydrocarbons in the country. These include French Total, Dutch-Royal Shell, Italian ENI, Premier-Kufpec and Austrian OMV. -Dow Jones Newswires

Opinion

Editorial

Centre vs provinces
Updated 10 Jun, 2026

Centre vs provinces

The reason the centre finds itself in this position is rooted in its failure to expand the tax net and boost revenues.
Party in crisis
10 Jun, 2026

Party in crisis

THE young KP chief minister must be starting to realise just how thorny a seat he occupies. There has been a flurry...
Varsity woes
10 Jun, 2026

Varsity woes

FINANCIAL crises affecting public sector universities across Pakistan are now having an impact on academic...
Doctor attacked
09 Jun, 2026

Doctor attacked

AN act of reprehensible violence has shaken the medical community. On Saturday, an employee of the Provincial Civil...
AJK flare-up
Updated 09 Jun, 2026

AJK flare-up

The situation started deteriorating after a trader affiliated with the JAAC was reportedly shot in an altercation with law-enforcers.
Fault lines
09 Jun, 2026

Fault lines

THE April 8 ceasefire that halted hostilities between Israel and Iran has encountered its most serious test yet....