Pakistan’s Economic Coordination Committee (ECC) has approved a new policy allowing foreign fuel suppliers to establish bonded storage facilities within the country. This decision comes after recent disruptions to global oil supply routes, specifically the closure of the Strait of Hormuz, prompting concerns about national energy security. The facilities, funded by the suppliers themselves, will enable re-export and supply to Pakistan’s domestic market. The guidelines, pending since June 2023, aim to strengthen the country’s oil and gas supply chain through strategic reserves and increased storage capacity. While the Federal Board of Revenue initially opposed the policy due to monitoring challenges, other stakeholders supported its implementation. The move seeks to indigenize energy resources and ensure a more resilient petroleum supply. The guidelines cover a range of petroleum products, including crude oil, petrol, diesel, and LPG.