Upgradation policy: Oil refiners say committed to signing accords

ISLAMABAD: Pakistan’s oil refineries have reaffirmed their commitment to sign agreements under the Refinery Upgradation Policy early next month, a move expected to unlock approximately USD 6 billion in investment in the country’s refining sector.

Federal Minister for Petroleum Ali Pervaiz Malik held meetings with the managements of Pakistan’s five oil refineries, Pak Arab Refinery Limited (PARCO), Pakistan Refinery Limited (PRL), National Refinery Limited (NRL), Cnergyico and Attock Refinery Limited (ARL), to review progress towards implementation of the Brownfield Refinery Upgradation Policy, the financial and operational performance of the refineries and measures to strengthen Pakistan’s energy security.

Management of all five refineries reaffirmed its readiness to sign agreements under the Refinery Upgradation Policy, with the agreements expected to be signed early next month. The agreements are expected to unlock approximately USD 6 billion in investment in Pakistan’s refining sector.

READ MORE: Pakistan expects $5bn investment to transform refineries soon: petroleum minister

The federal minister highlighted that refinery upgradation is essential for long term sustainability of the country’s refining sector. He said the planned upgrades would enable refineries to produce Euro 5-compliant fuel products in Pakistan. Producing these products domestically would reduce reliance on imported petrol and diesel and could also lower prices compared to imported products.

The minister stressed that timely signing of the agreements was imperative for taking forward the upgradation programme. He said the government would continue to facilitate the refineries in addressing any issues related to implementation of the policy. During a separate meeting with PARCO management, the minister was briefed on the company’s financial and operational performance, along with its broader plans for strengthening Pakistan’s energy security.

The minister appreciated PARCO for managing its operations effectively during the Strait of Hormuz crisis. He said Pakistan successfully managed the crisis and ensured that the country’s petroleum supply system did not run dry. He emphasised that maintaining continuity of petroleum supplies and building resilient supply chains remained essential components of Pakistan’s energy security.

The minister was also briefed on ongoing developments concerning the proposed Oil City in Hub, envisaged as a strategic energy terminal and storage complex. The project is aimed at strengthening energy security, enhancing trade connectivity, supporting supply assurance and contributing to economic growth.

In a separate meeting at PRL, the Managing Director, Board of Directors and management briefed the federal minister on the company’s current financial and operational performance. The management also apprised the minister of measures taken to maintain continuity of refinery operations during the Strait of Hormuz crisis.

In separate meetings with Cnergyico, NRL and ARL, the minister sought the views of the respective Managing Directors on any impediments to implementation of the New Refinery Upgradation Policy.

The managing directors informed the minister that their respective companies had completed the required preparations and were now ready to sign the agreements, which would constitute the first step towards implementation of the policy.

The managing director of ARL highlighted the need to upgrade existing refineries to ensure their compliance with changing global dynamics and evolving fuel standards. He also appreciated the Petroleum minister’s leadership, noting the pivotal role played by the Ministry in advancing major reforms in the petroleum sector.

The federal minister reiterated that modernising Pakistan’s refining capacity was important not only for improving the quality and efficiency of petroleum products but also for strengthening domestic supply resilience, reducing reliance on imported petrol and diesel, and advancing the country’s broader energy security objectives. The minister said the government remained committed to working with the refining industry to ensure timely implementation of the New Refinery Upgradation Policy and to facilitate the investments required for the sector’s modernisation.

Copyright Business Recorder, 2026