PM Shehbaz Approves Amendments to Brownfield Refinery Policy to Support $6 Billion Upgrade Plan
Prime Minister Shehbaz Sharif has approved amendments to Pakistan’s Brownfield Refinery Policy 2023, a move aimed at modernizing the country’s existing oil refineries and encouraging an estimated $6 billion in investment.
The decision was made during a meeting of the Cabinet Committee on Energy (CCoE) following consultations with industry representatives and relevant government institutions.
Refinery Upgrades to Improve Fuel Quality
The Brownfield Refinery Policy 2023 was introduced to support the modernization of existing refineries across Pakistan. The planned upgrades are expected to:
- Increase production of Euro-V standard petrol and diesel
- Reduce the production of furnace oil
- Improve environmental performance
- Strengthen Pakistan’s long-term energy security
- Encourage private sector investment in the refining industry
Focus on Energy Security
During the meeting, Prime Minister Shehbaz Sharif said that upgrading the country’s refineries is an important step toward reducing reliance on imported fuels and improving the domestic energy supply.
He noted that modernized refineries would help meet growing fuel demand while supporting the production of cleaner and higher-quality petroleum products.
Directions for Policy Implementation
The Prime Minister instructed the relevant ministries and government institutions to ensure the timely implementation of the revised refinery policy.
He also called for reforms to improve the performance of the Oil and Gas Regulatory Authority (OGRA), emphasizing the importance of transparency, effective regulation, and a competitive environment to attract investment in Pakistan’s energy sector.
Investment Promotion
According to officials, the government plans to promote the updated refinery policy to potential investors through investment roadshows in Qatar, Saudi Arabia, and other Gulf countries.
The Prime Minister also acknowledged the efforts of Petroleum Minister Ali Pervaiz Malik and his team in finalizing the proposed amendments.
Expected Outcomes
Officials told the meeting that the revised policy is intended to:
- Accelerate refinery modernization projects
- Increase production of environmentally compliant fuels
- Reduce the output of lower-quality petroleum products
- Support Pakistan’s broader energy sector reforms
- Strengthen strategic petroleum reserves to enhance fuel security
The government expects these measures to improve the efficiency of the refining sector while supporting sustainable growth in Pakistan’s energy industry.
