A meeting between the Federal Minister for Petroleum and PPEPCA leadership focused on expanding exploration activities, addressing operational challenges, and enhancing investment in Pakistan’s oil & gas sector. PPEPCA’s role in bolstering energy supplies and boosting economic contributions was highlighted.

PPEPCA officials say that if the government insists on imposing super tax rates higher than those allowed under Petroleum Concession Agreements (PCAs), member companies may pursue legal remedies, including international arbitration. The issue deals with the protection of fiscal stability as guaranteed in PCAs and foreign investment confidence.

The PPEPCA has warned that the government’s imposition of a super tax could negatively impact the financial viability of both foreign and local oil & gas exploration companies. The association says changing fiscal terms retrospectively could lead to international arbitration and discourage foreign investment in Pakistan’s petroleum sector.