ISLAMABAD: Pakistan will sign long-delayed agreements with major oil refineries on Thursday to unlock nearly $6 billion in planned investment, marking a key step towards overhauling the country’s aging refining industry, officials and industry executives said on Wednesday.
The agreements are scheduled to be signed at 11 a.m. at the Inter State Gas Systems (ISGS) office, a refinery executive told The News. A senior Petroleum Division official also confirmed the signing.
The government has authorised ISGS, which operates under the Petroleum Division, to sign the agreements and oversee their implementation, replacing an earlier arrangement under which the Oil and Gas Regulatory Authority (Ogra) was expected to manage the process.
The signing follows a series of regulatory approvals that cleared the way for the refinery modernisation programme. The Cabinet approved the amended refining policy last week, while the Economic Coordination Committee approved draft upgrade agreements on September 14.
The policy, originally introduced in 2023 and amended in August, provides incentives for existing or “brownfield” refineries to undertake major upgrades rather than build new plants.The projects have a five-year completion window and are aimed at increasing production of higher-quality fuels while helping refineries meet tighter environmental and fuel standards.
The government expects the upgrades to strengthen domestic refining capacity and reduce reliance on imported petroleum products, potentially easing pressure on the country’s fuel import bill.Upgraded refineries could also process a wider range of crude, including Iranian and Russian crude, subject to Pakistani law and applicable international sanctions, according to the official.
