A feasibility study for a $600 million oil pipeline is likely to be finished by June this year. A group of seven oil companies in conjunction with the International Finance Corporation are planning the 800-kilometre pipeline from Karachi to Mahmoodkot, near Multan. The consortium includes: Shell Pakistan, Pakistan State Oil (PSO), PakArab Refinery (Parco), Eirad and the Army Welfare Trust, all local; Caltex of the US: and Amex Utilities of the UK.

The pipeline will be for the transport of white oil and will run parallel to an existing pipeline which is currently used for both white oil and crude oil. Upon completion of the new pipeline, the existing one will be used for transporting the crude oil needed at the Pak-Arab refinery to be built at Multan.

It is hoped that the pipeline will be completed by 1999, when it will be used by PSO, Shell and Caltex for imported oil.