Draft refinery upgrade agreement finalised

The Petroleum Division has forwarded the completed refinery upgrade pact to the Economic Coordination Committee (ECC) for approval, according to The Express Tribune. Once cleared, the pact would allow the amended refinery policy of 2023 to move into implementation. An official said the draft was settled after consultations involving the regulator Ogra, the SIFC, the refineries and other stakeholders.

The policy is meant to push existing refineries into large investment projects that produce Euro-V fuels and cut furnace oil output. The government amended it after the Cabinet Committee on Energy approved the changes on July 28, 2026, and the federal cabinet ratified them on August 10. Refineries applying for incentives will have to conclude upgrade pacts with the ministry or the body it nominates.

The government has named ISGS as the implementation entity, giving it responsibility for executing agreements, running upgrade accounts, monitoring projects and administering incentive payments. The finalised agreement sets a single contractual framework covering party obligations, project monitoring, milestone checks and incentive disbursement. The Law and Justice Division judged the draft consistent with the refining policy, while the Finance Division submitted its comments before the file went to the ECC.