In a coordinated push to modernise its downstream oil sector, Pakistan’s five largest refineries – Pak Arab Refinery Limited (PARCO), Pakistan Refinery Limited (PRL), National Refinery Limited (NRL), Cnergyico, and Attock Refinery Limited (ARL) – gathered with Federal Minister for Petroleum Ali Pervaiz Malik to discuss the government’s Refinery Upgradation Policy. The meeting, reported by Business Recorder and relayed by Oilprice.com, set the stage for formal agreements that are expected to be signed in early September. Under the policy, each refinery will receive a tailored package of technical and financial support aimed at enhancing capacity, improving product quality, and reducing reliance on imported refined fuels.
The proposed upgrades are projected to unlock as much as $6 billion in private and public investment. While the exact allocation of funds remains under negotiation, the consensus among the participants is that modernisation will involve installing new processing units, upgrading existing distillation columns, and implementing advanced environmental controls. The upgrades are also expected to align the refineries with international standards, potentially opening avenues for export of refined products.
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The government’s involvement signals a shift from ad‑hoc subsidies toward a structured, policy‑driven framework for the sector. By offering clearer regulatory guidelines and potential fiscal incentives, the Ministry of Petroleum hopes to attract both domestic and foreign capital, thereby reducing the chronic shortfall in Pakistan’s refining capacity that has historically forced the country to import a significant share of its gasoline and diesel.
