Pakistan's major oil refineries signed long-delayed upgradation agreements Thursday, launching a nearly $6 billion investment program aimed at modernising the country's aging refining sector, producing cleaner Euro-V fuels and strengthening energy security. Attock Refinery Limited (ARL), National Refinery Limited (NRL), Cnergyico Pakistan Limited (CPL) and Pakistan Refinery Limited (PRL) signed the agreements, while Pakistan's largest refinery, PARCO, is expected to sign soon. The projects are expected to significantly reduce furnace oil production, replace imported petroleum products with locally refined fuels and strengthen Pakistan's ability to meet domestic energy needs.

The industry estimates that the refinery upgrades could save the country about $1.5 billion annually in foreign exchange by reducing petroleum product imports. For refinery executives who have been involved in the initiative since its early stages, the signing marks the culmination of nearly seven years of policy development and delays. "The journey began with the first draft of the Refining Policy in December 2019, followed by its approval in August 2023 and subsequent amendments before finally reaching implementation today - almost seven years later," said Adil Khattak, CEO of ARL and chairman of the Energy Committee of the Overseas Investors Chamber of Commerce and Industry.

Khattak said the recent geopolitical developments had reinforced the importance of domestic refining capacity as a strategic national asset rather than simply a commercial enterprise. He credited Federal Minister for Petroleum Ali Pervaiz Malik, the Petroleum Division and other government institutions with helping remove the remaining hurdles and move the policy toward implementation.