Pakistani Government Approves $6 Billion Oil Refining Policy

The Pakistani government has approved a new oil refining policy after six years of deadlock. The Brownfield Refining Policy aims to modernize the country's petroleum refineries with an estimated investment of about $6 billion.

The policy, which was approved by the Cabinet Committee on Energy led by Prime Minister Shehbaz Sharif, provides stability clauses to protect investment and tax incentives for refineries. It also allows refineries to import machinery against the export of furnace oil and enhances offshore and onshore storage capacity for greater energy security.

The total production of motor spirit (petrol) and high-speed diesel (HSD) is expected to increase significantly, while furnace oil production will decline. The five existing refineries will upgrade their facilities to produce environmentally friendly fuels meeting Euro-V emission specifications.