PM Shehbaz Approves $6 Billion Refinery Upgrades Plan

Prime Minister Shehbaz Sharif has approved amendments to Pakistan’s Brownfield Refinery Policy 2023, paving the way for long awaited upgrades of existing refineries aimed at improving fuel quality, reducing imports, and attracting fresh investment into the energy sector.

The decision was taken during a meeting of the Cabinet Committee on Energy (CCoE), where the government approved proposed changes to the refinery policy after consultations with industry stakeholders and relevant institutions.

The Brownfield Refinery Policy 2023 was introduced to encourage modernization of Pakistan’s existing refineries and attract around $6 billion in investment for upgrades. The projects are designed to enable production of Euro V compliant petrol and diesel, reduce furnace oil output, improve environmental standards, and strengthen Pakistan’s energy security.

During the meeting, Prime Minister Shehbaz Sharif said refinery modernization was essential for reducing dependence on imported fuels and ensuring a more secure energy system. He emphasized that upgraded refineries would help meet domestic energy needs while supporting cleaner fuel production.

The Prime Minister directed relevant ministries and institutions to ensure timely implementation of the revised policy and introduce reforms to improve the performance of the Oil and Gas Regulatory Authority (OGRA). He said stronger regulation, transparency, and competition were necessary to encourage investment in the energy sector.

The government also plans to promote the amended refinery policy among investors in Qatar, Saudi Arabia, and other Gulf countries through roadshows. The Prime Minister praised Petroleum Minister Ali Pervaiz Malik and his team for their work on finalizing the policy amendments.

Officials informed the meeting that the revised policy aims to accelerate refinery upgrades, increase production of environmentally compliant fuels, reduce low quality petroleum products, and support Pakistan’s energy reform agenda. The Prime Minister also directed authorities to increase strategic petroleum reserves to strengthen fuel security.