Oil Refineries Pressed to Accelerate Upgrades Under Revised Policy

The government has directed oil refineries to accelerate their multibillion-dollar modernization projects under the amended Brownfield Refining Policy, with projects required to be completed within six years.

Under the revised framework, refineries that complete their upgrades within three years will receive an additional 0.5% incentive. The deadline for signing upgrade agreements has also been shortened from 90 days to 60 days.

The government has warned that refineries failing to sign upgrade agreements, as well as those that have not implemented previously signed agreements, will face penalties.

The amended policy also shifts responsibility for signing and implementing refinery upgrade projects from OGRA to the Petroleum Division, while OGRA will retain its statutory regulatory role.

The government plans to promote the revised policy internationally to attract investment into Pakistan’s refining sector, including through roadshows across the Middle East, Azerbaijan and Türkiye.