Pakistan Refineries Commit to $5 Billion Upgrade Under New Policy
Four local refineries in Pakistan have signed agreements to upgrade their refining technologies for cleaner product quality and increased production, with an estimated investment of about $5 billion over five years. The upgradation agreements were signed under the Brownfield Petroleum Refining Policy 2026, approved by the Cabinet Committee on Energy led by Prime Minister Shehbaz Sharif in July.
The refineries involved are Attock Refinery, National Refinery, Pakistan Refinery, and Cnergyico Petroleum. Their management teams and the Inter State Gas Company (ISGC) signed the agreements, which will oversee the implementation process.
According to Adil Khattak, CEO of Attock Refinery and Chairman of the Energy Committee of the Overseas Investors Chamber of Commerce and Industry (OICCI), this is a historic milestone for Pakistan's refining industry. He noted that the refineries will modernize and expand their operations to produce environmentally friendly fuels as per Euro-V specifications.
The new policy provides tax incentives, stability clauses to protect investment, foreign exchange accounts for imports of machinery against furnace oil exports, and enhanced onshore and offshore storage for energy security. The refineries must improve product quality, quantity, and product mix through upgradation, leading to a significant increase in petrol production (72% to 18,400 tonnes per day) and HSD output (39% to 29,520 tonnes per day), while furnace oil production will drop by 63%.