The Pakistani government has approved important amendments to the Pakistan Oil Refining Policy 2023. The changes aim to upgrade existing refineries so they can produce cleaner Euro-V fuels and attract new investment.
The Pakistan Petroleum Exploration and Production Companies Association (PPEPCA) welcomed the decision. It called the move a major step toward modernising the local refining industry. The reforms will help existing facilities produce higher-quality petrol and diesel that meet Euro-V standards.
These upgrades are expected to reduce Pakistan’s heavy reliance on imported refined petroleum products. By increasing domestic production capacity, the country can improve fuel quality and strengthen long-term energy security.
Federal Minister for Petroleum Ali Pervaiz Malik played a key role in finalising the amendments. PPEPCA leaders praised his efforts in removing long-standing policy bottlenecks that had delayed progress in the sector.
Industry estimates suggest the upgraded policy could unlock around $5–6 billion in investment. After modernisation, petrol production is projected to rise significantly, diesel output will increase, and furnace oil production will drop sharply.
Refineries will now work under clearer rules, including stability clauses and incentives designed to protect investments. PPEPCA has said it will cooperate closely with the Ministry of Petroleum and other stakeholders to ensure smooth implementation of the reforms.
The amended policy marks an important step toward a more competitive and environmentally friendly refining sector in Pakistan.