ISLAMABAD (Nazrana Times) — Pakistan is set to sign long-awaited upgrade agreements with major domestic oil refineries on Thursday, paving the way for around $6 billion in planned investment to modernise the country’s ageing refining infrastructure.

The agreements are expected to give participating refineries five years to carry out extensive upgrades aimed at producing cleaner, higher-quality fuels, improving efficiency and reducing Pakistan’s dependence on imported petroleum products.

According to The News, the signing ceremony is scheduled for 11 a.m. at the office of Inter State Gas Systems (ISGS). The government has authorised ISGS, which operates under the Petroleum Division, to sign the agreements and oversee their implementation.

The arrangement represents a change from the earlier framework under which the Oil and Gas Regulatory Authority (OGRA) was expected to play the central role in implementing the refinery upgrade agreements.

Years-Long Modernisation Plan Moves Forward

The signing follows a series of government approvals intended to resolve delays surrounding Pakistan’s refinery modernisation programme.

Pakistan originally introduced its Brownfield Refinery Upgradation Policy in 2023. The framework has since undergone amendments as the government and refining industry worked to address regulatory and financial issues that had delayed implementation.

The Petroleum Division formally notified the latest amended policy on September 10, 2026.

Under the programme, existing — or “brownfield” — refineries will be able to undertake major modernisation projects rather than requiring entirely new refining facilities.

Cleaner Fuels and Lower Import Dependence

A major objective of the programme is to enable Pakistani refineries to produce Euro-V-compliant petrol and diesel domestically.

The government says modernising the country’s refineries should improve fuel quality, increase efficiency and reduce dependence on imported petrol and diesel.

Pakistan’s Petroleum Division has previously said that the country’s five major refineries — Pak-Arab Refinery Limited (PARCO), Pakistan Refinery Limited (PRL), National Refinery Limited (NRL), Cnergyico and Attock Refinery Limited (ARL) — had indicated their readiness to participate in the upgrade programme.

The government estimates that implementation of the projects could generate approximately $6 billion in investment across the refining sector.

Greater Flexibility in Crude Oil Processing

The upgrades are also expected to give refineries greater flexibility in processing different grades and sources of crude oil.

According to officials cited in Pakistani media, modernised facilities could potentially process a broader range of crude, including supplies originating from countries such as Iran and Russia.

Any such purchases, however, would remain subject to Pakistani law, commercial considerations and applicable international sanctions or restrictions.

The refinery programme forms part of Pakistan’s broader effort to strengthen energy security by expanding domestic processing capacity and reducing exposure to disruptions in international fuel supplies.

If the agreements are implemented according to schedule, participating refineries will have five years to complete their respective upgrade projects.