Modernization of Five Pakistani Oil Refineries to Attract $6 Billion Investment
ISLAMABAD: Five major oil refineries in Pakistan have expressed readiness to move forward with agreements for the modernization of their facilities, a development expected to attract around $6 billion in investment in the country’s refining sector.
Following the proposed upgrades, the refineries will be able to produce petroleum products meeting Euro-V standards, helping reduce Pakistan’s dependence on imported petrol and diesel.
The development came after Federal Petroleum Minister Ali Pervaiz Malik held separate meetings with the managements of five major refineries: Pak-Arab Refinery Limited (PARCO), Pakistan Refinery Limited (PRL), National Refinery Limited (NRL), Cnergyico and Attock Refinery Limited (ARL).
The meetings reviewed the implementation of the Brownfield Refinery Upgrade Policy, the financial and operational performance of the refineries, and measures to further strengthen the country’s energy security.
The managements of all five refineries reaffirmed their commitment to signing agreements under the policy. The agreements are expected to be finalized at the beginning of next month.
Officials said the agreements would pave the way for approximately $6 billion in investment in the refining sector.
Karachi: Federal Minister for Petroleum Ali Pervaiz Malik held a meeting with Cnergyico management to discuss the New Refinery Upgradation Policy. The management confirmed that the required preparations have been done and ready to sign the upgradation agreement. pic.twitter.com/0ihpgmnW6O
— Petroleum Division, Ministry of Energy (@Official_PetDiv) August 28, 2026
Petroleum Minister Ali Pervaiz Malik said modernization of the refineries was essential for the long-term sustainability of Pakistan’s refining industry.
He said once the upgrades were completed, Pakistan would be able to produce Euro-V standard fuel locally. This would not only reduce reliance on imported petrol and diesel but could also result in locally produced petroleum products being cheaper than imported fuel.
The minister stressed the importance of signing the agreements on time and assured the refineries that the government would provide all possible assistance in resolving issues related to implementation of the policy.
During the meeting, PARCO management briefed the minister on the company’s financial and operational performance as well as broader plans related to energy security.
Khi: Federal Minister for Petroleum Ali Pervaiz Malik met the managements of ARL and NRL to discuss the New Refinery Upgradation Policy. Both companies apprised that required preparations to proceed with signing the upgradation agreements has been completed. pic.twitter.com/KvqJZdAF7e
— Petroleum Division, Ministry of Energy (@Official_PetDiv) August 28, 2026
The minister appreciated PARCO’s performance during the Strait of Hormuz crisis, saying Pakistan had managed to ensure uninterrupted supplies of petroleum products despite the crisis.
Progress on the proposed Oil City project in Hub was also reviewed. The project aims to establish a strategic energy terminal and storage facility to improve energy security, trade connectivity and continuity of supplies.
The managements of PRL, NRL, Cnergyico and ARL also informed the minister that necessary preparations for implementation of the refinery upgrade policy had been completed and that they were ready to sign the agreements.
Ali Pervaiz Malik said modernization would improve fuel quality and refining capacity while strengthening Pakistan’s energy security, domestic supplies and overall economic stability.
