Pakistan is set to sign agreements with local refineries within the next seven to 10 days to accelerate long-delayed refinery upgrade projects, Petroleum Minister Ali Pervaiz Malik said.
Speaking at the Pakistan Energy Conference 2026, organised by the Petroleum Institute of Pakistan, Malik said the government had shared the draft refinery upgradation agreement with refineries and expected the agreements to be signed before the end of August.
“We are going to sign the agreements with the refineries in a week or 10 days,” he said.
According to the petroleum minister, upgraded refineries will be capable of processing both heavier and lighter crude grades, improving refining capacity and efficiency in Pakistan.
The government expects the upgrades to strengthen domestic oil infrastructure, reduce reliance on imported petroleum products and support greater energy security.
Pakistan Petroleum Dealers Association (PPDA) Chairperson Malik Khuda Baksh also said the refinery upgrades could create room for further reductions in diesel prices.
He said higher refining capacity and improved efficiency could reduce the country’s dependence on imported petroleum products and allow consumers to benefit from lower costs.
Malik stressed the need for consistent and predictable policies to attract investment in Pakistan’s upstream oil and gas sector, particularly high-risk offshore exploration.
Pakistan has resumed offshore exploration after a gap of around two decades, with local companies including Mari Petroleum, Pakistan Petroleum Limited and Oil and Gas Development Company Limited participating alongside international partners.
The minister said companies willing to invest more than $100 million in a single exploration well require policy consistency and medium-term visibility.
He also said successful explorers should be allowed to retain and reinvest profits in infrastructure needed to develop successful discoveries.
Malik said petroleum should become an integral part of Pakistan’s medium-term energy policy, with stronger coordination between the petroleum, power and water divisions.
He also called for regular meetings of the Cabinet Committee on Energy (CCOE), chaired by Prime Minister Shehbaz Sharif, to monitor developments across the energy value chain.
The government is also working with the World Bank to restructure the gas sector, separate infrastructure from energy businesses and introduce greater competition.
Malik said circular debt flows had been brought close to zero without increasing consumer tariffs, adding that deregulation and greater private-sector participation would remain key components of the government’s energy reform programme.
PPDA Chairman Malik Khuda Baksh welcomed the government’s efforts to pass the benefits of lower diesel prices on to consumers.
He said the petroleum minister had briefed him on the refinery upgradation programme during a visit to Karachi.
Baksh said upgraded refineries would be able to process different crude grades, helping increase domestic refining capacity.
He urged the government to accelerate the upgrade process so that domestic production could better meet local demand and create greater scope for further reductions in petroleum product prices.
