Pakistan Revamps Oil Refining Policy with Estimated $6 Billion Investment

The Pakistan government has finally approved the Brownfield Refining Policy after six years of deadlock. This policy aims to modernize the country's petroleum refineries, with an estimated investment of about $6 billion.

The policy provides stability clauses to protect investment, tax incentives, and foreign exchange accounts for the import of machinery against the export of furnace oil. It also enhances offshore and onshore storage capacity for greater energy security.

The existing five refineries will improve product quality, quantity, and product mix through upgradation under this policy. As a result, total petrol production would increase by 72% to 18,400 tonnes per day from the current 10,700 TPD, while furnace oil production would fall by 63% to 5,714 TPD.