Pakistan’s refining sector is preparing for a major investment of nearly $6 billion, with the country’s five major oil refineries reaffirming their readiness to sign agreements under the Brownfield Refinery Upgradation Policy. Pak Arab Refinery Limited (PARCO), Pakistan Refinery Limited (PRL), National Refinery Limited (NRL), Cnergyico and Attock Refinery Limited (ARL) have completed the required preparations and are expected to sign the agreements early next month.
The planned investment is aimed at modernising Pakistan’s existing refining infrastructure and enabling local refineries to produce Euro 5 compliant fuel products. The upgrades are expected to strengthen domestic petroleum production, reduce the country’s dependence on imported petrol and diesel and potentially help lower fuel costs compared with imported products. The development is also being viewed as an important step toward improving the resilience of Pakistan’s energy supply system.
The progress was reviewed during a series of meetings held by Federal Minister for Petroleum Ali Pervaiz Malik with the managements of the five refineries. Discussions focused on the implementation of the refinery upgradation policy, the financial and operational performance of the companies and measures required to strengthen Pakistan’s energy security. The meetings also provided an opportunity for refinery managements to highlight any issues that could affect implementation of the policy.
The petroleum minister said upgrading Pakistan’s refining capacity was essential for the long-term sustainability of the domestic refining sector. He stressed that timely signing of the agreements would be important for moving the programme into its implementation phase. The government, he said, would continue supporting the refineries in resolving issues associated with the implementation of the upgradation programme.
During a separate meeting with PARCO management, the minister received a briefing on the company’s financial and operational performance as well as its broader plans to contribute to Pakistan’s energy security. The discussion also covered the company’s role in maintaining petroleum supplies during the Strait of Hormuz crisis.
The minister appreciated PARCO for managing its operations during the crisis and noted that Pakistan was able to maintain continuity in its petroleum supply system. He emphasised that ensuring uninterrupted supplies and developing resilient supply chains would remain important for the country’s energy security.
The proposed Oil City in Hub was also discussed during the meeting. The project is envisioned as a strategic energy terminal and storage complex that could contribute to supply security, improve trade connectivity and support wider economic activity. The initiative is expected to play a role in strengthening Pakistan’s energy infrastructure and improving the country’s capacity to manage petroleum supplies.
At Pakistan Refinery Limited, the Managing Director, Board of Directors and management briefed the petroleum minister on the company’s financial and operational position. They also discussed measures taken by the refinery to maintain continuity of operations during the Strait of Hormuz crisis.
Separate meetings were also held with the managements of Cnergyico, National Refinery Limited and Attock Refinery Limited. During these discussions, the minister sought information on any obstacles that could delay implementation of the New Refinery Upgradation Policy.
The Managing Directors of the three companies informed the minister that their respective organisations had completed the necessary preparations and were ready to sign the agreements. The signing is expected to represent the first formal step toward implementing the planned refinery modernisation programme.
Attock Refinery Limited’s Managing Director also highlighted the importance of upgrading existing refining facilities to keep pace with changing international market conditions and evolving fuel standards. The company appreciated the petroleum minister’s efforts to advance reforms aimed at modernising Pakistan’s refining sector.
The government considers refinery modernisation important for improving both the quality and efficiency of petroleum products produced domestically. Moving toward Euro 5 compliant fuels could also reduce Pakistan’s dependence on imported refined petroleum products while strengthening the domestic supply chain.
The proposed $6 billion investment therefore represents a significant planned commitment to Pakistan’s existing refining infrastructure. By upgrading brownfield facilities rather than relying solely on new refining capacity, the programme is intended to improve the performance of existing refineries and support greater domestic production.
The petroleum minister reiterated that the government would continue working with the refining industry to ensure timely implementation of the policy. The government also plans to facilitate the investments and address implementation-related issues required to modernise the sector.
With PARCO, PRL, NRL, Cnergyico and ARL now reporting readiness to sign the agreements, Pakistan’s refinery upgradation programme is expected to enter a key implementation stage next month. The planned projects are aimed at improving fuel standards, strengthening domestic petroleum supply and supporting the country’s broader energy security objectives.
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