Four Pakistani Refineries Sign $5 bn Upgrade Deals to Boost Cleaner Fuel Output
Four of Pakistan's five refineries have signed agreements under the new Brownfield Petroleum Refining Policy 2026, committing about $5 bn over five years to modernise plants and produce cleaner Euro-V fuels.
Under the Brownfield Petroleum Refining Policy 2026, four of Pakistan’s five local refineries—Attock Refinery, National Refinery, Pakistan Refinery and Cnergyico Petroleum—have formalised contracts with the government to invest about $5 bn in technology upgrades over the next five years. The Inter State Gas Company will oversee implementation. The policy, cleared by the Cabinet Committee on Energy led by Prime Minister Shehbaz Sharif, seeks to modernise facilities, shift production toward Euro-V compliant gasoline and diesel, and slash furnace-oil output, potentially saving $1.5 bn in foreign exchange each year.
Industry leaders, including Attock Refinery CEO Adil Khattak, hailed the move as a historic step for energy security. The only remaining refinery, Pak Arab Refinery (Parco), says its current technology is modern and has not signed yet; its participation could lift total investment to $6 bn. Incentives such as tariff protection and customs-duty rebates are built into the agreement to encourage financing and construction.
Why it matters
The upgrades will increase Pakistan’s supply of cleaner fuels, reduce imports and improve energy security.
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