Pakistan may soon see billions of dollars in investment to upgrade local oil refineries.
Federal Petroleum Minister Ali Pervaiz Malik held successful talks in Karachi with senior officials from the country’s oil refineries.
All five major refineries are ready to sign agreements with the government next month under the Refinery Upgrade Policy, sources said.
The upgrade program could bring around $6 billion in investment into Pakistan’s refinery sector.
The government and refineries discussed:
- Upgrading existing refineries
- Improving financial and operational performance
- Strengthening Pakistan’s energy security
According to the Petroleum Minister, refinery upgrades are important for the long-term future of Pakistan’s refining industry.
The upgraded refineries will be able to produce Euro-5 standard fuel in Pakistan
What could this mean for Pakistan?
- More petrol and diesel could be produced locally
- Pakistan could reduce its dependence on imported fuel
- The oil import bill could decrease
- Local fuel prices may come under pressure to fall
- Energy security could improve
Meanwhile, PARCO briefed the minister on progress on the proposed Oil City project in Hub, Balochistan.
The Oil City is expected to help strengthen energy security, improve trade links, ensure fuel supplies and support economic growth.
The five refineries — PARCO, Pakistan Refinery, Attock Refinery, National Refinery and Cnergyico — have reportedly completed preparations needed to implement the Refinery Upgrade Policy.
In short: Pakistan could see up to $6 billion in refinery investment, more local fuel production and lower dependence on imported petrol and diesel.
