Proposal to upgrade oil refineries hailed

KARACHI: Mian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance, Chairman National Business Group Pakistan and Chairman Policy Advisory Board FPCCI, has welcomed the proposed $6 billion investment for upgrading Pakistan’s five oil refineries. Mian Zahid Hussain said PARCO, Pakistan Refinery, National Refinery, Cynergico and Attock Refinery have confirmed their readiness to sign agreements under the government’s Brownfield Refinery Upgradation Policy. According to the ministry of petroleum, these agreements are scheduled to be signed this month, after which the refineries will begin financial arrangements, engineering work and other related activities within the stipulated timeframe. He said the five refineries currently have a total crude-oil processing capacity of approximately 350, 000 barrels per day. Following the upgrades, they will be capable of producing environmentally cleaner Euro-V-compliant petrol and diesel and converting a substantial proportion of furnace oil, which has a very low sale value, into petrol and high-speed diesel. Mian Zahid Hussain said that after the completion of the upgradation, domestic petrol production is expected to increase by 72 percent, high-speed diesel production by 39 percent while furnace-oil production is expected to be converted into value-added products and thus would decline by 63 percent. This overall upgradation would reduce the need for imported petrol and diesel. He said the US–Iran war and disruptions around the Strait of Hormuz had made the upgradation of Pakistani refineries even more necessary. Pakistan imports nearly 90 percent of oil and LNG through the Gulf routes and the Strait of Hormuz. Mian Zahid Hussain said Pakistan could not control international conflicts or global oil prices, but it could reduce its vulnerability by constructing modern refineries, diversifying its crude-oil supply sources and building strategic petroleum reserves. The enhanced capacity to store and process different grades of crude oil would provide Pakistan with greater flexibility during geopolitical crises. He appreciated Prime Minister Mian Muhammad Shehbaz Sharif and Federal Minister for Petroleum Ali Pervaiz Malik for ending the prolonged policy delays. He hoped that the $6 billion investment would become a reality after the signing of agreements, availability of foreign financing and the projects became functional. Mian Zahid Hussain stressed that the government must ensure long-term stability in taxation and provide a business-friendly environment. Independent monitoring should ensure that tariff protection is used exclusively for upgrading plants and does not overburden consumers. He said timely implementation would generate employment, facilitate technology transfer and improve environmental standards. Further delays, however, would leave Pakistan vulnerable to inflation and future geopolitical shocks. Copyright Business Recorder, 2026

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