Pakistan’s refineries assure $6 billion upgrade if taxation issues are resolved in upcoming budget

The chief executive officers of Pakistan’s leading oil refineries met with Federal Petroleum Minister Ali Pervaiz Malik on Tuesday, underscoring the government’s commitment to energy security and advancing refinery upgrade projects worth over $6 billion.

The upgrades are critical to modernizing Pakistan’s refining infrastructure.

The resolution of a longstanding sales tax issue marks a key step toward fostering investment and improving operational efficiency in the oil refining sector.

The CEOs praised Malik’s proactive approach and Prime Minister [Name]’s support in addressing industry challenges. They reaffirmed their commitment to refinery upgrades in line with the prime minister’s vision for improving fuel quality, cutting emissions, and promoting clean energy.

Speaking at the meeting, Malik emphasized the government’s dedication to a sustainable energy ecosystem.

“Resolving the sales tax issue reflects our commitment to supporting the refining sector, which is vital to Pakistan’s energy security and economic growth,” he said. “These upgrades will boost efficiency and align with our shift toward cleaner, more sustainable energy.”

He added that policy consistency is key to sector viability and investor confidence.

Once completed, the upgrades will raise fuel standards, reduce dependence on imported petroleum, and support environmental sustainability by producing Euro-V compliant fuels. The initiative is central to the government’s broader strategy to strengthen the energy sector and ensure long-term economic stability through foreign investment.

The delegation included Zahid Mir, CEO of Pakistan Refinery Limited; Irtiza Qureshi, managing director of PARCO; Adil Khattak, CEO of Attock Refinery Limited; Amir Abbasi, CEO of Cnergyico; Asad Hasan, CEO of National Refinery Limited.