Federal Minister for Petroleum Ali Pervaiz Malik reaffirmed on Monday the government’s commitment to supporting refinery upgradation as a national priority and stated that modernising Pakistan’s refining infrastructure is essential for ensuring energy security, promoting cleaner fuels, and strengthening the country’s resilience against external disruptions.
He said this while chairing a high-level meeting at the Petroleum Division with the CEOs/Managing Directors of the country’s oil refineries to review and accelerate the operationalisation of Brownfield Upgradation Refinery Policy, read an official statement.
Malik underscored the strategic importance of the refining sector and emphasised that local refineries were critical national assets for ensuring an uninterrupted fuel supply and strengthening Pakistan’s energy security.
He said that the ongoing regional situation arising from the US-Iran conflict had further highlighted the urgency of reducing reliance on external supply chains and ensuring maximum domestic refining flexibility/capability.
READ MORE: CEOs of refineries appreciate resolution of sales tax issue
He stressed that the timely upgradation of existing refineries is essential to enhance production capacity, improve efficiency, and ensure the supply of cleaner Euro V fuels in line with international standards.
“Refinery upgradation will enable Pakistan’s refineries to produce Euro-V compliant fuels, contributing significantly towards improved environmental outcomes, better engine performance, and reduced emissions,” he stated.
The minister noted that despite the introduction of both refining policies in 2023, implementation progress had remained stagnant.
He stressed that addressing the existing bottlenecks is essential to advancing refinery modernisation and attracting sustained long-term investment in the sector.
Meanwhile, the meeting reviewed refining policies and the Upgradation Agreement template in detail to ensure their effective and timely operationalisation.
The CEOs/Managing Directors highlighted key challenges and proposed practical measures for resolution. They stated they had full confidence in the Petroleum Division’s efforts.
The exemption of sales tax on petroleum products was identified as the key issue affecting the viability of upgradation projects.
The minister directed that a comprehensive proposal addressing these challenges be finalised and submitted to the relevant forum before the finalisation of the upcoming budget, so that the refining policies may be implemented without delay.
