$5 Billion Upgrade Push: Pakistan's Brownfield Refinery Policy Takes Shape

The Pakistani government has announced the Brownfield Refinery Policy, aiming to modernize existing refineries and improve fuel supply security.

Under this policy, refineries must sign upgrade agreements with the government by October 1 to proceed with planned modernization projects worth around $5 billion.

Those that fail to meet this deadline will face a further reduction in the deemed duty on high-speed diesel, and if no agreement is signed by November 15, the duty will be completely withdrawn.

The policy also requires refineries to maintain adequate crude oil stocks, with imported crude oil stock sufficient for 20 days and locally produced crude oil stock for 15 days.