Pakistan Approves Oil Refining Policy Amendments and Expands Strategic Reserves

Pakistan Oil Refining Policy strategic petroleum reserves Euro‑4 Euro‑5 fuel Gulf roadshows energy security

The Cabinet Committee on Energy, chaired by Prime Minister Shehbaz Sharif, approved amendments to the Pakistan Oil Refining Policy 2023. The reforms aim to modernise existing brownfield refineries so they can produce Euro‑4 and Euro‑5 standard fuels, reduce dependence on imported refined petroleum products, and meet international emissions commitments. The government has earmarked an estimated US$5‑6 billion for refinery upgrades and introduced incentives such as a 10 % tariff protection on motor spirit and high‑speed diesel for seven years, escrow financing, and sales‑tax exemptions for imported equipment.

In parallel, the prime minister directed the expansion of Pakistan’s strategic petroleum reserves to bolster energy security. To attract investment, officials will conduct roadshows in Qatar, Saudi Arabia and other Gulf states, promoting the revised policy to potential investors. The combined measures are presented as a key pillar of Pakistan’s energy‑security strategy and a driver for domestic refining capacity and cleaner fuel production.

Entities: Brownfield Refinery Policy · Cabinet Committee on Energy · Gulf roadshows · Oil and Gas Regulatory Authority (OGRA) · Pakistan · Pakistan Oil Refining Policy 2023 · Qatar · Shehbaz Sharif · Strategic Petroleum Reserves

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[● 6 SOURCES] Amendments to the Pakistan Oil Refining Policy 2023 were approved by the Cabinet Committee on Energy. (approved)
[○ 1 SOURCE] The proposed changes include reducing deemed duty protection for refinery upgrades from 7.5% to 5%. (policy proposal)
[● 4 SOURCES] Prime Minister Shehbaz Sharif warned that negligence or delays in implementing the policy would not be tolerated. (warning)
[● 3 SOURCES] Prime Minister Shehbaz Sharif ordered expansion of Pakistan's strategic petroleum reserves. (order)
[● 4 SOURCES] The government will hold roadshows in Qatar, Saudi Arabia and other Gulf countries to promote the amended brownfield refinery policy. (plan)
[● 5 SOURCES] The policy aims to upgrade refineries to produce Euro-4 and Euro-5 fuel standards. (objective)
[● 5 SOURCES] The reforms target reduction of dependence on imported petroleum products. (objective)
[○ 1 SOURCE] The Finance Act 2024 shifted petroleum products from a zero‑rated to an exempt sales‑tax regime, increasing unrecoverable costs for refineries. (tax law change)
[○ 1 SOURCE] The policy amendments are expected to attract $5‑6 billion of refinery modernization investment. (estimate)
[○ 1 SOURCE] The policy offers a 10 % tariff protection on motor spirit and high‑speed diesel for seven years.
[● 3 SOURCES] The government will hold roadshows in Qatar, Saudi Arabia and other Gulf countries to promote the amended policy.
[○ 1 SOURCE] Estimated investment of US$5‑6 billion will be required for refinery modernization projects.