Petroleum Minister assures full support to oil industry to strengthen energy security, fast track upgradation tion

ISLAMABAD : Federal Minister for Petroleum Ali Pervaiz Malik chaired a high-level meeting at the Petroleum Division with the CEOs/Managing Directors of the country’s oil refineries to review and accelerate the operationalization of Brownfield Upgradation Refinery Policy.
At the outset, the Federal Minister underscored the strategic importance of the refining sector and emphasized that local refineries are critical national assets for ensuring uninterrupted fuel supply and strengthening Pakistan’s energy security. He noted that the ongoing regional situation arising from the US-Iran conflict has further highlighted the urgency of reducing reliance on external supply chains and ensuring maximum domestic refining flexibility / capability.
The Minister stressed that timely upgradation of existing refineries is essential to enhance production capacity, improve efficiency, and ensure supply of cleaner Euro V fuels in line with international standards. He stated that 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.
The Federal Minister observed that despite the issuance of both refining policies in 2023, progress on implementation has remained stalled. He emphasized that removing the bottlenecks is crucial for moving forward with refinery modernization and attracting long-term investment in the sector.
During the meeting, the refining policies and the Upgradation Agreement template were reviewed in detail to ensure their effective and timely operationalization. The CEOs/Managing Directors highlighted key challenges and proposed practical measures for resolution. They stated they had full confidence in the Petroleum Division efforts.
The exemption of sales tax on petroleum products was identified as the key issue affecting viability of upgradation projects. The Minister directed that a comprehensive proposal addressing these challenges be finalized and submitted to the relevant forum before the finalization of the upcoming budget, so that the refining policies may be implemented without delay.
The Federal Minister reaffirmed the Government’s commitment to supporting refinery upgradation as a national priority and stated that modernizing Pakistan’s refining infrastructure is essential for ensuring energy security, promoting cleaner fuels, and strengthening the country’s resilience against external disruptions.
The meeting was attended by Secretary Petroleum, Additional Secretary (Policy), Director General (Oil), CEO Pakistan Refinery Limited, MD PARCO, CEO Attock Refinery Limited, CEO Cynergico, CEO National Refinery Limited.