Islamabad: Federal Minister for Petroleum Ali Pervaiz Malik has assured the country’s oil refineries of full governmental support to expedite the operationalization of the Brownfield Upgradation Refinery Policy, amid heightened energy security concerns due to regional tensions.

According to Press Information Department, the minister emphasized the critical role of local refineries in maintaining a steady fuel supply and enhancing Pakistan’s energy resilience, particularly in light of the ongoing US-Iran conflict. He cited the necessity of reducing dependency on foreign supply chains and enhancing domestic refining capabilities.

During the meeting, the minister highlighted the importance of upgrading existing refineries to increase production capacity, boost efficiency, and supply cleaner Euro V fuels that align with international standards. The initiative aims to improve environmental outcomes, enhance engine performance, and reduce emissions.

Despite the issuance of refining policies in 2023, progress has stalled, prompting the minister to call for the removal of obstacles to modernizing refineries and attracting long-term investment. The meeting reviewed refining policies and the Upgradation Agreement template, with industry leaders expressing confidence in the Petroleum Division’s efforts.

A key issue identified was the exemption of sales tax on petroleum products, affecting the viability of upgradation projects. The minister instructed officials to prepare a comprehensive proposal to address these challenges before the upcoming budget finalization.

The meeting, attended by top officials and refinery executives, underscored the government’s commitment to modernizing Pakistan’s refining infrastructure to ensure energy security, promote cleaner fuels, and bolster the nation’s resilience against external disruptions.