Summary Pakistan’s five major refineries are ready to sign agreements under the Refinery Upgradation Policy, with deals expected next month to unlock around $6 billion in investment.
ISLAMABAD (Dunya News) – Federal Minister for Petroleum Ali Pervaiz Malik on Friday held meetings with the managements of Pakistan’s five oil refineries to review progress on the Brownfield Refinery Upgradation Policy, refinery performance and measures to strengthen the country’s energy security.
The minister met with Pak Arab Refinery Limited (PARCO), Pakistan Refinery Limited (PRL), National Refinery Limited (NRL), Cnergyico and Attock Refinery Limited (ARL), according to a news release.
The managements of all five refineries reaffirmed their readiness to sign agreements under the Refinery Upgradation Policy, with the agreements expected to be signed early next month.
The agreements are expected to unlock around $6 billion in investment in Pakistan’s refining sector.
Ali Pervaiz Malik said refinery upgradation was essential for the long-term sustainability of the country’s refining sector. He said the planned upgrades would enable local refineries to produce Euro 5-compliant fuel products.
Domestic production of these products would help reduce Pakistan’s reliance on imported petrol and diesel and could also help lower their prices compared to imported products.
The minister stressed that timely signing of the agreements was imperative to move forward with the upgradation programme. He said the government would continue facilitating refineries in resolving issues related to implementation of the policy.
During a separate meeting with PARCO management, the minister was briefed on the company’s financial and operational performance and its broader plans to strengthen Pakistan’s energy security.
The minister appreciated PARCO for effectively managing its operations during the Strait of Hormuz crisis. He said Pakistan successfully managed the crisis and ensured that the country’s petroleum supply system did not run dry.
He emphasised that maintaining continuity of petroleum supplies and developing resilient supply chains remained essential components of Pakistan’s energy security.
The minister was also briefed on developments concerning the proposed Oil City in Hub, which is planned as a strategic energy terminal and storage complex. The project aims to strengthen energy security, enhance trade connectivity, support supply assurance and contribute to economic growth.
In a separate meeting at PRL, the Managing Director, Board of Directors and management briefed the federal minister on the company’s current financial and operational performance.
The management also informed the minister about measures taken to maintain continuity of refinery operations during the Strait of Hormuz crisis.
During separate meetings with Cnergyico, NRL and ARL, the minister sought the views of the respective managing directors on any impediments to implementing the New Refinery Upgradation Policy.
The managing directors informed the minister that their respective companies had completed the required preparations and were now ready to sign the agreements, which would mark the first step towards implementing the policy.
The managing director of ARL highlighted the need to upgrade existing refineries to ensure compliance with changing global dynamics and evolving fuel standards.
He also appreciated the Petroleum Minister’s leadership, noting the pivotal role played by the ministry in advancing major reforms in the petroleum sector.
The federal minister reiterated that modernising Pakistan’s refining capacity was important not only for improving the quality and efficiency of petroleum products but also for strengthening domestic supply resilience, reducing reliance on imported petrol and diesel, and advancing the country’s broader energy security objectives.
Ali Pervaiz Malik said the government remained committed to working with the refining industry to ensure timely implementation of the New Refinery Upgradation Policy and facilitate the investments required to modernise the sector.
