Pakistan Refineries Ink $6 Billion Upgrade Deals Amid Regional Conflict

Pakistan's oil refineries have made significant progress in upgrading their infrastructure with the signing of agreements worth $6 billion. The move aims to modernize aging plants, produce cleaner Euro-V fuels, and reduce reliance on imported petroleum products.

The agreements were signed by five refineries: Attock Refinery Ltd., National Refinery Ltd., Cnergyico Pakistan Ltd., Pakistan Refinery Ltd., and Pak-Arab Refinery Ltd. (PARCO). The government-designated entity, Inter State Gas Systems (ISGS), will oversee the implementation of the upgrade program.

The modernization plan is expected to reduce Pakistan's reliance on imported petrol and diesel, improve fuel quality, and strengthen energy security. Industry estimates suggest that the upgrades could save Pakistan around $1.5 billion annually in foreign exchange by reducing its reliance on imported petroleum products.

Petroleum Minister Ali Pervaiz Malik highlighted the need to reduce reliance on external supply chains and strengthen domestic refining capability following the US-Iran conflict, which has disrupted energy supplies and shipping in the Middle East.