The federal government has approved key amendments to the Pakistan Oil Refining Policy 2023, paving the way for major reforms aimed at modernizing the country’s refining sector, strengthening energy security, and attracting new investment. The decision was taken during a meeting of the Cabinet Committee on Energy, where Prime Minister Shehbaz Sharif directed authorities to swiftly implement the revised policy and expand Pakistan’s strategic petroleum reserves.
Chairing the high-level meeting, the prime minister emphasized that upgrading Pakistan’s oil refineries has become increasingly important as the country’s energy demand continues to grow. He said modern refinery infrastructure would improve fuel quality, strengthen domestic refining capacity, reduce dependence on imported petroleum products, and support the production of cleaner, environmentally friendly fuels.
“Upgrading oil refineries is the need of the hour,” Prime Minister Shehbaz Sharif said, stressing that a modern refining sector is essential for ensuring long-term energy security and supporting sustainable economic growth.
The Cabinet Committee on Energy formally approved the proposed amendments to the Pakistan Oil Refining Policy 2023 after reviewing recommendations aimed at accelerating investment and improving the efficiency of the country’s petroleum sector.
The prime minister instructed the relevant ministries and departments to ensure the revised policy is implemented without unnecessary delays. He warned that any negligence or failure to execute the reforms efficiently would not be tolerated.
“After the implementation of the new policy, its effective and timely implementation should be ensured. No negligence or delay will be tolerated,” the prime minister told officials during the meeting.
He also directed authorities to continue consulting with stakeholders throughout the implementation process to ensure the reforms address industry requirements while encouraging long-term investment.
Officials briefing the committee said Pakistan’s existing refineries require significant modernization to meet evolving fuel quality standards and increasing domestic demand. Upgrading refinery infrastructure is expected to improve the production of higher-quality petroleum products while reducing the country’s reliance on imported refined fuels.
The government believes stronger domestic refining capacity will not only improve energy security but also help reduce foreign exchange outflows associated with fuel imports. Modern refineries are also expected to produce cleaner fuels that comply with international environmental standards.
During the meeting, Prime Minister Shehbaz Sharif also instructed the Oil and Gas Regulatory Authority (OGRA) to introduce reforms aimed at making the regulatory framework more efficient and responsive to changing market conditions.
He directed OGRA to focus on promoting greater competition, improving transparency, and creating a regulatory environment that encourages private-sector participation in Pakistan’s energy industry.
The prime minister said attracting domestic and international investment remains one of the government’s top priorities. He reiterated the government’s commitment to adopting modern technologies, implementing sustainable reforms, and maintaining a business-friendly environment that supports long-term economic development.
A key outcome of the meeting was the government’s decision to expand Pakistan’s strategic petroleum reserves. Prime Minister Shehbaz Sharif directed the relevant authorities to increase fuel storage capacity to strengthen the country’s ability to manage supply disruptions and improve preparedness during emergencies or periods of market volatility.
Energy experts have long emphasized the importance of maintaining larger strategic fuel reserves to protect against global supply shocks, geopolitical tensions, and fluctuations in international oil markets.
To further strengthen the sector, the prime minister instructed officials to organize investment roadshows in Qatar, Saudi Arabia, and other Gulf countries. The initiative aims to attract foreign investors interested in Pakistan’s refining, storage, and broader energy infrastructure projects.
Officials believe increased foreign investment will help accelerate refinery modernization, introduce advanced technologies, and support the country’s long-term energy transition goals.
The latest policy amendments form part of the government’s broader strategy to modernize Pakistan’s energy sector, improve fuel security, enhance regulatory efficiency, and create a more competitive petroleum industry. Authorities expect the reforms to strengthen investor confidence while ensuring a more reliable and sustainable energy supply for the country in the years ahead.
Also read: Govt Extends Austerity Measures for FY27
