Pakistan Oil and Gas Industry

The Government of Pakistan (GoP) has recently approved a new refining policy that will provide existing refineries with incentives to import machinery duty-free. The objective of this policy is to support the current refineries in upgrading their capacities to produce Euro-5 grade fuels. This will ultimately lead to a decrease the reliance on foreign fuels and boost the local fuel industry’s production. It is anticipated that the new refinery upgradation policy will bring opportunities for American companies to provide auxiliary equipment, catalyst, and offer services during EPC stages. 

As part of the refinery upgrade plan, refineries in Pakistan will establish hydro de-sulfurization units to reduce sulfur in diesel and set up isomerization plants to improve petrol quality. The GoP has been encouraging local refineries to upgrade their facilities to reduce the production of furnace oil that will require a capital investment of approx. $4 billion.

Contours of Policy:
-    To attract new investment in the sector.
-    Modernization and expansion of existing refineries that will provide opportunities to American companies dealing in refinery equipment and technologies.
-    Incentives to facilitate investments.
 

Sources:

Ministry of Petroleum, Government of Pakistan: petroleum.gov.pk) https://petroleum.gov.pk/SiteImage/Downloads/Brownfield%20Refinery%20Policy-2023.pdf