REVISION: 01

INTRODUCTION

This document reaffirms the general business principles that govern how Pakistan Refinery Limited conducts its affairs.

Upholding the PRL reputation is paramount. We are judged by how we act. Our reputation will be upheld if we act with honesty and integrity in all dealings and we do what is right at all times within the legitimate role of business.

Pakistan Refinery Limited has as its core values honesty integrity and respect for people. The company' also firmly believes in the fundamental importance of the promotion of trust, openness, teamwork and professionalism, and in pride in what it does.

Our underlying corporate values determine our principles. These principles apply to all transactions, large o_ small, and describe the behavior expected of every employee in the company in the conduct of its business.

In turn, the application of these principles is underpinned by procedures within Pakistan Refinery Limited which are designed to make sure that its employees understand the principles and that they act in accordance with them. We recognize that it is vital that our behavior matches our intentions.

All the elements of this structure - values, principles and the accompanying procedures are necessary.

Pakistan Refinery Limited recognizes that maintaining the trust and confidence of all stakeholders i.e. shareholders, employees, suppliers, customers and other people with whom it does business as well as the communities in which it works, is crucial to the company's continued growth and success.

We intend to merit this trust by conducting ourselves according to the standards set out in our principles. These principles served the company well for many years. It is the responsibility of management to ensure that all employees are aware of these principles, and behave in accordance with the spirit as well as the letter of this statement.

OBJECTIVES

The objective of Pakistan Refinery Limited is to engage efficiently, responsibly and profitably in the oil refining business activities, while contributing to the well being of the planet, its people in general and communities living around in specific.

Pakistan Refinery also aims to maintain a long-term position in its competitive environment by seeking high standard of performance.

RESPONSIBILITY

Pakistan Refinery Limited recognizes six areas of responsibility:

a. To Shareholders

To provide an acceptable return by protecting shareholder's investment and

b. To Customers

To win and maintain customers by developing and providing products which offer value in terms of price; quality, safety and environmental impact, which are supported by the requisite technological, environmental and commercial expertise.

c. To Employees

To respect the human rights of its employees, to provide its employees with good and safe conditions of work, and good and competitive terms and conditions of service, to promote the development and best use of human talent and equal opportunity employment, and to encourage the involvement of employees in the planning and direction of its work, and in the application of these principles within the company. It is recognized that commercial success depends on the full commitment of all employees.

d. To Those with whom it does business

To seek mutually beneficial relationships with contractors, suppliers and in joint ventures and to promote the application of these principles in so doing. The ability to promote these principles effectively will be an important factor in the decision to enter into or remain in such relationships.

e. To Society

PRL has the commitment not to indulge in any practice, which is not fair from social point of view and believes in contributing to the community development activities.

PRL is also committed not to indulge into antisocial and unfair trade practices such as adulteration, hoarding and black marketing.

f. To Government

1. To abide by the laws of land.
2. To avoid corrupting government employees.
3. To discourage the tendency of concentration of economic power and monopoly.

These six areas of responsibility are seen 'as inseparable. Therefore it is the duty of management continuously to assess the priorities and discharge its responsibilities as best it can on the basis of that assessment.

ECONOMIC PRINCIPLES

Profitability is essential to discharging these responsibilities and staying in business. It is a measure both of efficiency and of the value that customers place on PRL products. It is essential to the allocation of the necessary corporate resources and to support the continuing investment required to develop and produce future energy supplies to meet country needs. Without profits and a strong financial foundation it would not be possible to fulfill the responsibilities outlined above.

In general Pakistan Refinery Limited believes that the interests of the community can be served most efficiently by a market economy.

Criteria for investment decisions are not exclusively economic in nature but also take into account social, and environmental, health and safety consideration and an appraisal of the security of the investment.

BUSINESS INTEGRITY

Pakistan Refinery Limited insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships with all those with whom it does business. The direct or indirect offer, payment, soliciting and acceptance of bribes in any form are unacceptable practices. Employees must avoid conflicts of interest between their private financial activities and their part in the conduct of company business. All business transactions on behalf of Pakistan Refinery Limited must be reflected accurately and fairly in the accounts of the company in accordance with established procedures and subject to audit.

Law of the land shall be respected. In no case the Company is to become a party to the malpractices such as evasion of duty, cess, taxes etc.

POLITICAL ACTIVITIES

a. Of the company

Pakistan Refinery Limited acts in a socially responsible manner within the laws of Pakistan in pursuit of its legitimate commercial objectives.

Pakistan Refinery Limited does not make payments to political parties, organizations or their representatives or take any part in party politics. However, when dealing with governments PRL has the right and the responsibility to make its position known on any matter which affects itself, its stakeholders i.e. employees, customers, or shareholders. It also has the right to make its position known on matters affecting the community, where it has a contribution to make.

b. Of Employees

Where individuals wish to engage in activities in the community, including standing for election to public office, they will be given the opportunity to do so where this is appropriate in the light of local circumstances.

THE COMMUNITY

Pakistan Refinery Limited assesses the implications and effects of their decisions and policies on the components of the society and ensures that the interest is not affected by their actions.

Pakistan Refinery Limited takes a constructive interest in societal matters, which may not be directly related to the business. Opportunities for involvement - for example through community, educational or donations programmes will vary depending upon the scope for useful private initiatives.

COMPETITION

Pakistan Refinery Limited supports free enterprise. It seeks to compete fairly and ethically and within the framework of applicable competitions laws; the company will not prevent others from competing freely with it. PRL intends to remain in business through effective implementation of their business strategy evolved through business strategy workshops.

EFFECTIVE COMMUNICATION

Pakistan Refinery Limited recognizes that in view of the importance of its activities in which it is engaged and its impact on national economies and individuals, open communication (internal and external) is essential. To this end, Pakistan Refinery Limited provides full relevant information and appreciates suggestions for improvement from all stakeholders subject to any overriding considerations of business confidentially

PRL believes in formal and informal communication. The formal communication includes documented policy statements, procedural manuals, organization charts, job descriptions, training material, organized meetings and publication. Informal communication includes discussion between employees and their supervisors.

HEALTH, SAFETY, ENVIRONMENT AND QUALITY

In Pakistan Refinery Limited we are all committed to:

" Pursue the goal to provide a safe working environment.

" Pursue the goal of no harm to people.

" Protect the environment by reducing pollution.

" Use material and energy efficiently to produce products.

" Development of products consistent with future demands.

" Publicly report on our performance.

" To continually improve the system.

" To comply with all the applicable HSE/Quality laws and regulations.

" Play a leading role in providing best practice in the oil industry.

" Participate in programs helping community living around.

" Promote a culture in which all PRL employees share above commitment.

In this way we aim to have an HSE performance we can be proud of, to earn the confidence of our stakeholders i.e. customers, shareholders and society at large, to be a good neighbor and to contribute to sustainable development.

Z. HALEEM

GENERAL MANAGER