ISLAMABAD/ KARACHI: Four of Pakistan’s five local oil refineries signed formal upgrade agreements with the government on Thursday, paving the way for an estimated USD 6 billion investment over the next five years.
The multi-billion-dollar upgrades, initiated by Petroleum Minister Ali Pervaiz Malik, aim to modernise the domestic refining sector and strengthen the country’s long-term energy security.
Under the approved Brownfield Petroleum Refining Policy 2026, upgrade agreements have officially been signed. The government designated Inter State Gas Systems (ISGS) to execute and oversee the deals, shifting responsibility away from the Oil and Gas Regulatory Authority (OGRA), which was originally slated to manage the process.
The formal agreements were signed by the managements of four refineries — Attock Refinery, National Refinery, Pakistan Refinery and Cnergyico Petroleum in the office of the Inter State Gas Company (ISGC), a subsidiary of the Petroleum Division.
Reliable sources said the fifth local refinery, the Pak Arab Refinery (Parco) a joint venture of Pakistan and Abu Dhabi was not included in signing refineries. Three listed refineries disclosed the development in their respective notices to the Pakistan Stock Exchange (PSX).
In August 2026, management of all five refineries, i.e. PARCO, PRL, NRL, Cnergyico, and ARL, reaffirmed their commitment to sign agreements early September, expecting to unlock approximately USD 6 billion in investment.
However, in September 2026, the Federal Cabinet stipulated further amendments and set a deadline of October 1, 2026, for refineries to sign Upgrade Agreements with the Ministry of Energy (Petroleum Division) instead of OGRA.
Under the policy, which now supersedes all previous refining policies, the existing refineries have to improve product quality, quantity and product mix through upgradation.
Copyright Business Recorder, 2026