Pakistan's five refineries ready to sign $6bn upgradation agreements next month

August 28, 2026 (MLN): Pakistan's refining sector is set to receive an investment of nearly $6bn as all five oil refineries Pak Arab Refinery Limited (PARCO), Pakistan Refinery Limited (PRL), National Refinery Limited (NRL), Cnergyico and Attock Refinery Limited (ARL) reaffirmed readiness to sign agreements under the Brownfield Refinery Upgradation Policy, with the signings expected early next month.

The upgrades are aimed at enabling refineries to produce Euro 5 compliant fuel products domestically, reducing reliance on imported petrol and diesel and potentially bringing down their prices compared to imported products.

The development came as Federal Minister for Petroleum Ali Pervaiz Malik held a series of meetings with the managements of the five refineries to review progress on the upgradation policy, assess the companies' financial and operational performance, and discuss measures to strengthen Pakistan's energy security, said  a press release issued.

The minister said refinery upgradation was essential for the long-term sustainability of the country's refining sector and stressed that timely signing of the agreements was imperative for taking the programme forward, assuring that the government would continue to facilitate the refineries in addressing any implementation-related issues.

In a separate meeting with PARCO management, the minister was briefed on the company's financial and operational performance and its broader plans for strengthening energy security.

He appreciated PARCO for effectively managing its operations during the Strait of Hormuz crisis, noting that Pakistan had successfully navigated the crisis without letting its petroleum supply system run dry, and emphasised that maintaining continuity of supplies and building resilient supply chains remained essential to the country's energy security.

He was also briefed on developments concerning the proposed Oil City in Hub, envisaged as a strategic energy terminal and storage complex aimed at strengthening energy security, enhancing trade connectivity, supporting supply assurance and contributing to economic growth.

At PRL, the Managing Director, Board of Directors and management briefed the minister on the company's current financial and operational performance and on measures taken to maintain continuity of refinery operations during the Strait of Hormuz crisis.

In separate meetings with Cnergyico, NRL and ARL, the minister sought the views of the respective Managing Directors on any impediments to implementation of the New Refinery Upgradation Policy.

The Managing Directors informed the minister that their companies had completed the required preparations and were ready to sign the agreements, which would mark the first step towards implementation.

The Managing Director of ARL highlighted the need to upgrade existing refineries to keep pace with changing global dynamics and evolving fuel standards, and appreciated the Petroleum Minister's leadership in advancing major reforms in the sector.

The Federal Minister reiterated that modernising Pakistan's refining capacity was important not only for improving the quality and efficiency of petroleum products but also for strengthening domestic supply resilience, reducing reliance on imported petrol and diesel, and advancing the country's broader energy security objectives, adding that the government remained committed to working with the refining industry to ensure timely implementation of the policy and to facilitate the investments required for the sector's modernisation.

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