ISLAMABAD – The approval of amendments to the Pakistan Oil Refining Policy 2023 is expected to pave the way for major investments in the country’s refining sector, with planned refinery upgrades estimated to attract between $5 billion and $6 billion.
The revised policy is intended to enable local refineries to undertake long-awaited modernization projects aimed at producing cleaner fuels that meet Euro-V specifications.
The planned upgrades are also expected to increase domestic production of petrol and diesel while reducing the output of furnace oil, whose demand has declined significantly in recent years.
According to information shared following the policy’s approval, the refinery modernization projects are expected to improve fuel quality, strengthen Pakistan’s energy security, and help reduce the country’s dependence on imported petroleum products.
The investment is also expected to generate foreign exchange savings by increasing local production of higher-value fuels.
