ISLAMABAD: Pakistan’s long-delayed refinery modernisation programme is moving forward after the government approved amendments to its Brownfield Refining Policy, paving the way for an estimated $5–6 billion investment in upgrades to existing refineries.
The revised policy is aimed at modernising the country’s five major refineries, improving fuel quality and increasing domestic production of petrol and diesel. The government expects the upgrades to help reduce dependence on imported refined petroleum products and strengthen energy security.
The upgraded facilities are expected to move towards Euro-V fuel standards, while production of lower-value furnace oil is projected to decline significantly. Dawn reported that the policy targets a 72 percent increase in petrol production and a 39 percent rise in high-speed diesel output after the upgrades.
Industry executives say financing remains a major challenge. Refiners are looking towards foreign lenders and investors, including potential partners from Saudi Arabia, Azerbaijan and Türkiye, to finance projects running into billions of dollars.
The government has also introduced measures including tax incentives and investment protections to make the projects more attractive. Refineries are now expected to move towards individual upgrade agreements with the government.
The investment could mark a major shift for Pakistan’s energy sector by improving local refining capacity and reducing reliance on imported fuels.
