Karachi (GNP): Pakistan’s Economic Coordination Committee (ECC) has approved a draft agreement clearing the way for multi-billion-dollar upgrades at five oil refineries, as the country moves to modernise its ageing energy infrastructure. The approval falls under the Pakistan Oil Refining Policy for Upgradation of Existing and Brownfield Refineries, allowing refinery operators to proceed with their planned investment projects.
Officials estimate the agreement could unlock around six billion dollars in investment across the five refineries. The scale of the undertaking reflects the condition of the country’s existing capacity, as Pakistan’s refineries currently process a combined 350,000 barrels of crude per stream day but require substantial investment to improve fuel quality and reduce output of lower-value furnace oil.
The Brownfield Refining Policy, first introduced in 2023 and amended in August this year, provides incentives for existing refineries to modernise their facilities, produce cleaner Euro-V fuels and improve overall efficiency. Building on that framework, the newly approved agreement establishes the mechanism for implementing and monitoring the upgrade projects, with completion targeted within five years.
The projects will involve five of Pakistan’s major refining operators, namely Pak-Arab Refinery Limited, Attock Refinery Limited, National Refinery Limited, Cnergyico Pakistan Limited and Pakistan Refinery Limited. Officials said the upgrades are expected to bring domestic fuel production closer to international standards while reducing the country’s reliance on imported petroleum products.
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That reliance remains substantial. Pakistan imported petroleum products, crude oil, liquefied petroleum gas and liquefied natural gas worth 16.9 billion dollars in the previous fiscal year, according to Pakistan Bureau of Statistics data, underlining the scale of the import bill the modernisation programme is intended to ease over time.
Industry representatives said refinery operators had been awaiting implementation of the upgrade policy before moving ahead with their investment plans, and welcomed the agreement as a long-anticipated step. Analysts added that the modernisation drive would improve the competitiveness of domestic refineries while supporting the production of higher-quality fuels across the sector.
Officials said the agreement would also help create a more sustainable framework for refinery development going forward, describing it as a step toward strengthening Pakistan’s broader energy sector at a time when reducing import dependence remains a key economic priority.
Managing Editor at Global News Pakistan (GNP), with a Bachelor's degree in International Relations from Riphah International University, graduated with a Gold Medal. Reach out at sabahtareengnp@gmail.com
