Mian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance, Chairman National Business Group Pakistan, Chairman Policy Advisory Board FPCCI, and Former Provincial Minister Information Technology, has welcomed the proposed $6 billion investment for upgrading Pakistan’s five oil refineries. He described the initiative as a historic opportunity to strengthen Pakistan’s energy security, reduce dependence on imported finished fuels and modernise one of the country’s most important industries through advanced technology.
Mian Zahid Hussain said PARCO, Pakistan Refinery, National Refinery, Cynergico and Attock Refinery have confirmed their readiness to sign agreements under the government’s Brownfield Refinery Upgradation Policy. According to the Ministry of Petroleum, these agreements are scheduled to be signed in early September 2026, after which the refineries will begin financial arrangements, engineering work and other related activities within the stipulated timeframe. He said the five refineries currently have a total crude-oil processing capacity of approximately 350,000 barrels per day. Following the upgrades, they will be capable of producing environmentally cleaner Euro-V-compliant petrol and diesel and converting a substantial proportion of furnace oil, which has a very low sale value, into petrol and high-speed diesel.
Mian Zahid Hussain said that after the completion of the upgradation, domestic petrol production is expected to increase by 72 percent, rising from 10,700 tonnes to 18,400 tonnes per day. High-speed diesel production is projected to increase by 39 percent, from 21,240 tonnes to 29,520 tonnes per day, while furnace-oil production is expected to be converted into value-added products and thus would decline by 63 percent. This overall upgradation would reduce the need for imported petrol and diesel, conserve valuable foreign exchange and increase employment and domestic value addition. He said the US–Iran war and disruptions around the Strait of Hormuz had made the upgradation of Pakistani refineries even more necessary. Pakistan obtains approximately 90 percent of its imported oil and LNG through Gulf routes and the Strait of Hormuz. The recent conflict has disrupted maritime transportation, increased freight and insurance costs and pushed international oil prices higher. Following renewed tensions after the Islamabad ceasefire memorandum, Brent crude oil again reached over $92 per barrel, continuously increasing inflationary and balance-of-payments pressures on oil-importing countries such as Pakistan.
Mian Zahid Hussain said Pakistan could not control international conflicts or global oil prices, but it could reduce its vulnerability by constructing modern refineries, diversifying its crude-oil supply sources and building strategic petroleum reserves. The enhanced capacity to store and process different grades of crude oil would provide Pakistan with greater flexibility during geopolitical crises. He appreciated Prime Minister Mian Muhammad Shehbaz Sharif and Federal Minister for Petroleum Ali Pervaiz Malik for ending the prolonged policy delays. However, he hoped that the expected $6 billion investment would become a reality after the signing of agreements, availability of foreign financing and the projects became functional.
Mian Zahid Hussain stressed that the government must ensure long-term stability in taxation, policies, and provide a business-friendly environment. At the same time, all incentives given to the investors should be linked with clearly defined targets. Independent monitoring should ensure that tariff protection is used exclusively for upgrading plants and does not overburden consumers. He said timely implementation would generate employment, facilitate technology transfer and improve environmental standards. Further delays, however, would leave Pakistan vulnerable to imported inflation and future geopolitical shocks.