Pakistan’s leading oil refineries formally signed upgradation agreements on Thursday, setting in motion nearly $6 billion worth of investment aimed at overhauling the country’s aging refining infrastructure. The move is designed to shift production toward cleaner Euro-V grade fuels and bring the sector up to modern environmental standards.
Four major players, Attock Refinery Limited, National Refinery Limited, Cnergyico Pakistan Limited, and Pakistan Refinery Limited, put their signatures on the agreements. Parco, which operates the country’s largest refinery, is expected to follow suit shortly.
What the Refinery Upgrades Mean for Pakistan’s Energy Sector
Officials say the upgrade projects will sharply cut down furnace oil output while boosting the share of locally refined fuel used domestically, reducing reliance on imported petroleum products. This shift is seen as central to strengthening Pakistan’s capacity to meet its own energy demand without leaning as heavily on foreign supplies.
Industry estimates suggest the refinery upgradation drive could save the national exchequer roughly $1.5 billion a year in foreign exchange, largely by cutting down the volume of petroleum products Pakistan needs to import.
For executives who have pushed this initiative forward since its inception, Thursday’s signing represents the end of a nearly seven-year wait filled with policy drafts, revisions, and delays. Adil Khattak, CEO of Attock Refinery Limited and chairman of the Energy Committee at the Overseas Investors Chamber of Commerce and Industry, recalled that the process traces back to the first draft of the Refining Policy in December 2019, which was eventually approved in August 2023 before undergoing further amendments on the way to implementation.
Khattak pointed out that recent geopolitical shifts have underscored why domestic refining capability should be viewed as a matter of national strategic importance, not merely a business consideration.
He also acknowledged the role played by Federal Minister for Petroleum Ali Pervaiz Malik, along with the Petroleum Division and other government bodies, in clearing the remaining obstacles that had kept the policy from moving forward. “Reaching today’s milestone deserves recognition and celebration. It would not have been possible without the passionate, persistent and resilient leadership of Federal Minister for Petroleum Ali Pervaiz Malik, his team in the Petroleum Division and the support of other relevant government institutions. Their efforts in resolving the remaining impediments have been instrumental in translating a long-pending policy into implementation,” he said.