KARACHI - Pakistan State Oil (PSO) has embarked upon a strategy of domestic self-reliance by maximising fuel upliftment from local refineries. This will result in multiple benefits including reduced dependency on foreign fuel imports, increased throughput of local refineries and savings of foreign exchange worth an estimated $130 million per annum, said a PSO spokesperson.To manifest the vision of self-reliance, PSO and PARCO have recently signed an agreement whereby the refinery will provide POL products to PSO from its Mid Country Refinery (MCR) which is the largest refinery in Pakistan and the only one capable of producing low sulphur EURO II quality diesel. According to terms of this accord, PSO will open local Letters of Credit (LC) for PARCO which will result in confirmed payments to the refinery in a timely manner thereby enabling PARCO to increase its production. This arrangement promises to be a win-win situation for the country, its people as well as the companies. According to this agreement, PSO will be able to strengthen its product supply chain and avoid tying up its funds in bulk imports, while PARCO would benefit through a more cost effective utilisation of its refinery operations. Furthermore, savings on inland freight charges for Motor Gasoline and Diesel transportation from port to mid-country region would provide additional benefits to the end consumers.