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SINGAPORE: Pakistan’s largest refiner Cnergyico expects to boost fuel oil exports by 35 percent to 40 percent during the fiscal year ending June 2026 as high taxes have cut into domestic sales, its vice chairman said.

Pakistan levied additional taxes of about 40 percent on domestic sales of fuel oil in June, on top of a consumption tax of 18 percent, effectively shutting its refiners out of the domestic market.

The company has exported 80,000 tons, or 95 percent of its production, from July to date, versus 55 percent in the last fiscal year that ended in June, Usama Qureshi told Reuters on the sidelines of the APPEC conference.

Sales of fuel oil, mainly used by ships, typically make up 10 percent to 15 percent of the refiner’s annual revenue.

Cnergyico exported 247,000 metric tons (1.57 million barrels) in the fiscal year ended June, and an increase of 35 percent to 40 percent would boost annual exports to 333,000 tons to 346,000 tons.

Pakistan’s fuel oil exports jumped to an all-time high of 242,000 tons in August, data from analytics firm Kpler showed.

Cnergyico is upgrading its refinery complex to reduce fuel oil production and boost fuel sales to the domestic market, in line with Pakistan’s policy guidelines to upgrade refineries to produce cleaner fuels, Qureshi said in an interview.

“We will be importing more sweet crude and upgrading the refinery to produce cleaner diesel and gasoline, and also plan to set up fuel oil cracking facilities to boost gasoline production,” Qureshi added.

Cnergyico mainly imports so-called sour crude, with high sulfur content, from the Middle East, and booked Pakistan’s first-ever purchase of US crude last month.

US crude grades typically contain low levels of sulfur, and produce less fuel oil when refined.

Domestic sales of fuel oil are typically more profitable, while export revenue depends on fuel oil cracks, Qureshi said.

The company sold fuel oil to traders who exported it to destinations such as southern Europe, Singapore and the United Arab Emirates.

Pakistan has a significant fuel oil-based power generation capacity, but utilization has plunged this decade, due to lower power demand, higher solar adoption and increased generation from other clean energy sources such as nuclear.

ISLAMABAD: Pakistan on Wednesday expressed grief over the loss of life in Nepal’s recent political unrest and voiced hope that the Himalayan nation will move toward harmony and “renewed hope” in the days ahead.

The statement came as soldiers guarded Nepal’s parliament and patrolled deserted streets of the capital Katmandu under curfew after two days of deadly anti-corruption protests forced Prime Minister K.P. Sharma Oli to resign.

The turmoil, ignited by a social-media ban announced last week, has left at least 25 people dead and more than 600 injured, with demonstrators torching the homes of senior ministers.

The army has warned that any “vandalism, looting, arson and attacks on individuals and property in the name of protest will be considered punishable crimes.”

“Pakistan is deeply grieved at the loss of precious lives in Nepal,” the foreign office said in a statement circulated in Islamabad late Wednesday. “We convey condolences to the bereaved families and offer prayers for the swift recovery of the injured.”

“We trust that the resilience of the Nepalese people will shape a future marked by harmony and renewed hope,” the statement added.

Pakistan and Nepal have maintained friendly ties since establishing diplomatic relations in 1960. Both are members of the South Asian Association for Regional Cooperation (SAARC) and often coordinate on regional trade and climate issues.

Bilateral trade remains small, focused on Pakistani textiles, pharmaceuticals and carpets and Nepali tea, cardamom and herbs, while the two countries have encouraged chambers of commerce to expand links in pharmaceuticals, surgical goods and tourism.

The political upheaval in Nepal, driven largely by young demonstrators and dubbed the “Gen Z protests,” is the second youth-led uprising in South Asia after student demonstrations in Bangladesh toppled Sheikh Hasina’s government last year and altered that country’s regional priorities.