Oil, Gas and Refinery Sectors - updates

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Pakistan refineries set to ink $6bn upgrade deals​

• Agreements are expected to be signed early next month

BR
August 28, 2026

In a major development, Pakistan’s five oil refineries have agreed to move ahead with modernisation agreements that could unlock more than $6 billion in investment and enable domestic production of Euro 5-compliant fuel, reducing reliance on imported petrol and diesel.

The development came after Federal Minister for Petroleum Ali Pervaiz Malik held meetings with the managements of Pakistan’s five oil refineries, Pak Arab Refinery Limited (PARCO), Pakistan Refinery Limited (PRL), National Refinery Limited (NRL), Cnergyico and Attock Refinery Limited (ARL), to review progress towards implementation of the Brownfield Refinery Upgradation Policy, the financial and operational performance of the refineries, and measures to strengthen Pakistan’s energy security, read a statement on Friday.

The management of all five refineries reaffirmed their readiness to sign agreements under the Refinery Upgradation Policy, with the agreements expected to be signed early next month. The agreements are expected to unlock approximately $6 billion in investment in Pakistan’s refining sector.

The minister highlighted that refinery upgradation is essential for long-term sustainability of the country’s refining sector. He said the planned upgrades would enable refineries to produce Euro 5-compliant fuel products in Pakistan. Producing these products domestically would help reduce reliance on imported petrol and diesel and could also help bring down their price compared to imported products.

 

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2,500 Illegal Petrol Pumps Shut Down Across Pakistan​

Authorities have shut down 2,500 illegal petrol pumps to curub petroleum smuggling and the illegal movement of fuel.

The development was shared during a weekly meeting on Federal Board of Revenue (FBR) reforms chaired by Prime Minister Muhammad Shehbaz Sharif in Islamabad on Friday.

The meeting was informed that modern tech tools were used to identify and shut down 2,500 illegal petrol pumps, with legal action also taken against their operators.

The government has also introduced several digital measures to prevent the illegal movement of petroleum products.

These include GIS tagging of all legally operating petrol pumps, GPS tracking of petroleum shipments and linking oil marketing companies’ enterprise resource planning (ERP) systems with the tracking system.

A central tracking application has also been developed for law enforcement agencies to monitor petroleum products and detect illegal movement.


Work is continuing on the digital monitoring of petroleum product sales and other measures aimed at tightening controls over the fuel supply chain.

Prime Minister Shehbaz Sharif directed authorities to further intensify action against smuggling and illegal businesses and accelerate FBR reforms to strengthen revenue collection and enforcement.