Pakistan Refinery : Transmission of Annual Report for the year ended June 30, 2023

FUTURE IN THE MAKING

WITH CUT TING EDGE TECHNOLOGY

PAKISTAN REFINERY LIMITED

A N N U A L R E P O R T 2 0 2 3

DOUBLING CAPACITY

Since our inception in 1960, we have been on a pursuit of progress committed to capacity building and purposeful use of technology to fuel growth in an ever-evolving energy landscape. We take pride in being among the active refineries in Pakistan that excels in providing par excellence services, making it the ultimate choice for all stakeholders.

Taking a step forward, this year we've continued our journey towards Refinery Expansion and Upgrade Project (REUP), aimed at utilizing our technological advancement to maximize our crude processing potential of 50,000 bpd to 100,000 bpd per day, upgradation to a Deep Conversion Refinery for less production of HSFO, and manufacturing of eco-friendly fuels i.e. EURO V compliant HSD and MS/Petrol. We've embarked on a mission to shape the future of Pakistan's Oil & Gas Industry with a monumental expansion, doubling our capacity to meet the increasing demands for energy while establishing sustainable practices and setting new standards of

excellence in the industry.

CONTENT

ABOUT THE REPORT	04
COMPANY INFORMATION	06
PERFORMANCE DURING THE YEAR	08
CHAIRMAN'S REVIEW	10
MANAGING DIRECTOR & CEO'S MESSAGE	12
VISION & MISSION	14
REFINERY EXPANSION & UPGRADE PROJECT	16
CORPORATE GOVERNANCE	24
BOARD OF DIRECTORS	26
DIRECTORS' REPORT	53
ORGANISATIONAL OVERVIEW AND	60
EXTERNAL ENVIRONMENT
PRL OVER THE YEARS	62
PESTEL ANALYSIS	66
SWOT ANALYSIS	69
STRATEGIC APPROACH AND	70
RESOURCE MANAGEMENT
RISKS AND OPPORTUNITIES ANALYSIS	76
AND MANAGEMENT

BUILDING STRONG RELATIONSHIPS	82
WITH STAKEHOLDERS
BUSINESS MODEL	86
REFINERY OPERATIONS	88
ORGANISATIONAL STRUCTURE AND	90
REPORTING RELATIONSHIPS
REFINERY LEADERSHIP TEAM	92
CSR	106
IT GOVERNANCE	110
OUTLOOK	114
STRIVING FOR EXCELLENCE IN	116
CORPORATE REPORTING
FINANCIAL ANALYSIS	118
FINANCIAL STATEMENTS	138
DIRECTORS' REPORT - URDU	191
CHAIRMAN'S REVIEW - URDU	193
NOTICE OF ANNUAL GENERAL MEETING	194
FORM OF PROXY	198
FORM OF PROXY - URDU	200

ABOUT THE

REPORT

The Annual Report 2023 covers the period from July 1, 2022, to June 30, 2023, and significant subsequent events till its issuance. This report has been carefully shaped in accordance with the International Integrated Reporting Framework (Framework). This Report exemplifies Pakistan Refinery Limited's (PRL/the Company) dedication to aligning its corporate reporting with global best practices, aiming to comprehensively understand PRL's existing operations, values, commitments and future plans particularly increasing crude processing capacity by more than 100 percent.

This Report also underscores the integral connection between PRL's strategy, governance, performance, and the generation of value for all stakeholders. With an emphasis on transparency and informed decision-making, this Report unveils insights that facilitate timely decisions.

Key components of Integrated Reporting Encompass:

• Organizational overview and external environment: An exploration of PRL's operations within the broader context of the external landscape.
• Governance structure: Insights into PRL's governance setup and how it contributes to value creation.
• Business model: An overview of PRL's business model, demonstrating its role in generating value.
• Risks and opportunities: An analysis of the risks and opportunities PRL faces, its management and their impact on value creation.
• Strategy and resource allocation: An exposition of PRL strategies and how resources are allocated to attain them.
• Performance and achievements: Review of performance against strategic objectives and resultant outcomes.
• Outlook and challenges: Appraisal of prospects and challenges and their implications.
• Basis of presentation: Explanation of the Report's structure and the criteria for the inclusion of elements.

The online version of this Report is available on PRL's corporate website, accessible through this link: http://www.prl.com.pk/financial-reports/.

The video message of the Managing Director & CEO on PRL's overall performance for the year ended June 30, 2023, along with views on future plans is uploaded on the website at the following link http://www.prl.com.pk/investor-information/.

This Report reflects PRL's accomplishments and its commitment to growth, sustainability and stakeholders' engagement.