Pakistan expects $6b investment as five refineries sign Brownfield upgradation deals

The Petroleum Division said on Friday that all five refineries have reaffirmed their readiness to formally sign upgrade agreements under the Brownfield Refinery Upgradation Policy early next month. Together, the deals could open up roughly $6 billion of investment in the refining sector. Petroleum Minister Ali Pervaiz Malik met the managements of the five companies to review progress, their finances and operations, and steps to bolster energy security.

The Express Tribune reported that the statement linked the upgrades to Euro-V compliant petrol and diesel, which would reduce dependence on imported fuel and could bring prices down relative to imported products. The planned changes follow July amendments to the Pakistan Oil Refining Policy 2023, approved by the Cabinet Committee on Energy to allow existing plants to cut furnace oil output. Industry members had earlier raised concerns about a possible cut in deemed duty protection from 7.5% to 5% and maintained that the refineries had not caused the delays.

Malik said timely signing was essential for moving the programme forward and that the government would keep helping refineries resolve implementation problems. Attock Refinery's managing director argued that existing plants need upgrades to keep pace with shifting global conditions and fuel norms. Oil City, a proposed energy terminal and storage complex in Hub, was also discussed during the minister's meetings.