Prime Minister Shehbaz Sharif has instructed the Petroleum Division to organize a signing ceremony for refinery upgrade agreements under the Brownfield Refinery Policy, with his presence. This decision came during a recent energy sector meeting chaired by the Prime Minister. The Petroleum Division has initiated discussions with refineries for the ceremony.
The amended oil refining policy, approved by the Cabinet on February 15, 2024, after recommendations from the Cabinet Committee on Energy (CCoE), addresses concerns raised by refineries to make upgradation projects viable. The amendments, made after extensive consultations, aim to enhance production of petrol and diesel by 99% and 47%, respectively, while reducing furnace oil production by 78%.
The policy’s implementation is expected to attract investments of US $5-6 billion, improve environmental standards with cleaner fuels, and result in significant foreign exchange savings. Prime Minister Sharif views this policy as a key achievement of the caretaker government and emphasizes its importance for implementation.
The policy, which took over four years to develop, was initiated by Nadeem Babar during his tenure as Special Advisor to the Prime Minister. The role of OGRA and the Directorate General Oil is crucial for the successful execution of the policy, as highlighted by Adil Khattak, Chairman of OCAC.
Story by Mushtaq Ghumman
