Pakistan is moving ahead with a major Rs1.68 trillion refinery-upgrade programme aimed at increasing local fuel production and reducing the country’s dependence on imported petrol and diesel.
The proposed agreements involve Pakistan’s five major refineries: PARCO, Pakistan Refinery Limited (PRL), National Refinery Limited (NRL), Cnergyico and Attock Refinery Limited (ARL). The companies have confirmed their readiness to sign agreements under the government’s Brownfield Refinery Upgradation Policy.
The broader investment package is expected to unlock around $6 billion for modernising Pakistan’s refining industry. The upgrades are designed to improve refinery efficiency and allow the production of Euro-5 standard fuels locally.
According to reports, the modernization could potentially increase petrol production by 72% and high-speed diesel output by 39%, while reducing furnace-oil production by around 63%. This would help refineries convert lower-value products into more valuable fuels needed in the domestic market.
The government expects higher domestic production to reduce fuel imports, strengthen energy security and potentially ease pressure on fuel prices. The agreements are expected to be signed in early September.
The initiative is being seen as an important step toward upgrading Pakistan’s aging refining infrastructure and creating a more self-reliant domestic fuel supply system.
