ISLAMABAD: The oil refining industry has crossed the $1 billion export mark for the first time, earning an estimated $1.046 billion in FY26 and emerging as an unexpected source of much-needed foreign exchange amid a nearly $40 billion merchandise trade deficit.
The latest figures show that refineries are not only helping Pakistan avoid imports of finished petroleum products but are also generating significant export earnings.Industry data shows that the country’s five major refineries exported petroleum products worth about $1.046 billion during the fiscal year.
Parco led the export drive, generating around $277 million, followed by Cnergyico PK Limited with approximately $258 million. Together, the two refineries brought in $535 million, accounting for more than half of the sector’s total export proceeds.
National Refinery Limited contributed around $238 million, Pakistan Refinery Limited about $200 million, while Attock Refinery Limited earned roughly $73 million from exports.The refinery sector’s $1.046 billion export proceeds were equivalent to almost 3.5 per cent of Pakistan’s total merchandise exports of $30.139 billion in FY26.
The achievement assumes greater significance against a deteriorating trade balance. Pakistan’s merchandise exports declined by about 5.9 per cent, from $32.04 billion in FY25 to $30.139 billion, while imports rose to approximately $69.76 billion, pushing the merchandise trade deficit to around $39.62 billion.
In that environment, the refining industry’s billion-dollar export performance represents a substantial foreign-exchange contribution from a sector normally associated with the country’s large petroleum import bill.
A major driver behind refinery exports has been the sharp decline in domestic furnace-oil consumption, particularly as the power sector has reduced its reliance on the fuel.Because refineries produce multiple petroleum products simultaneously, they cannot simply stop producing furnace oil while continuing to manufacture petrol, high-speed diesel, jet fuel and other products.
Falling domestic demand has therefore periodically created inventory pressures, forcing refiners to reduce crude-processing rates and, in extreme cases, shut down units.Exports provide an operational release valve, allowing refineries to clear surplus stocks, maintain crude throughput and continue supplying essential petroleum products to the domestic market.
The Oil and Gas Regulatory Authority (Ogra) has consequently allowed refineries to export surplus furnace oil while requiring them to maintain adequate stocks for domestic consumption.But the industry’s export story is increasingly moving beyond conventional furnace-oil shipments.
Cnergyico’s move into Very Low Sulphur Fuel Oil (VLSFO) bunkering represents a potentially more strategic development.The company has begun supplying marine fuel to international vessels at Pakistani ports, opening a route into the global maritime-fuels market.
Cnergyico’s roughly $258 million in FY26 export earnings underline the scale of its growing exposure to international petroleum-product markets.Industry stakeholders believe the $1 billion milestone can ultimately prove to be only the beginning.
