Government approves amendments to the Pakistan Oil Refining Policy 2023, expands strategic petroleum reserves, and seeks foreign investment to strengthen long-term energy security.
ISLAMABAD: Prime Minister Shehbaz Sharif has directed authorities to expand Pakistan’s strategic petroleum reserves while approving key amendments to the Pakistan Oil Refining Policy 2023, marking a significant step toward strengthening the country’s energy security and modernising its refining industry.
Chairing a meeting of the Cabinet Committee on Energy (CCoE), the prime minister reviewed progress on refinery upgrade projects, energy sector reforms, and the implementation of the revised refining policy. He described refinery modernisation as a national priority, saying it would enhance fuel security, reduce reliance on imported petroleum products, and support the production of cleaner fuels.
The approved amendments aim to increase refinery production capacity and enable the manufacturing of Euro-V standard petrol and diesel. The reforms are also designed to reduce the production of furnace oil and other lower-quality fuels, helping Pakistan meet international environmental standards while lowering air pollution.
To attract foreign investment, Prime Minister Shehbaz directed officials to organize investment roadshows in Qatar, Saudi Arabia, and other Gulf countries, highlighting opportunities in Pakistan’s refining sector. He stressed that the revised policy should be implemented without delay and warned that negligence in executing the reforms would not be tolerated.
The prime minister also instructed relevant ministries and institutions to work closely with industry stakeholders to accelerate implementation. Additionally, he called for improved performance by the Oil and Gas Regulatory Authority (OGRA) to enhance transparency, encourage fair competition, and strengthen investor confidence in Pakistan’s energy market.
The renewed focus on strategic petroleum reserves comes after recent regional tensions exposed Pakistan’s vulnerability to fuel supply disruptions, particularly during concerns over oil shipments through the Strait of Hormuz. The episode underscored the need for stronger emergency fuel reserves and a more resilient energy infrastructure.
Although the Pakistan Oil Refining Policy was finalized in 2023 and approved the following year, its implementation slowed after incentives were withdrawn in the federal budget, delaying refinery upgrade agreements. The government later resumed discussions after addressing financial concerns raised by refinery operators, aiming to unlock nearly $6 billion in planned investments.
About The Author
