Islamabad: Four out of five local oil refineries on Thursday signed agreements that allow the government to invest an estimated USD 6 billion over the next five years nased on potential foreign investment. They agreements include the respective managements of Attock Refinery, National Refinery, Pakistan Refinery, and Cnergyico Petroleum, and were signed at the Inter State Gas Company (ISGC) office - a subsidiary of the Petroleum Division.
The multibillion dollar upgrades aim to modernise domestic refining and improve the country’s long term energy security under the newly approved Brownfield Petroleum Refining Policy 2026. The government has appointed Inter State Gas Systems (ISGS) to execute and oversee these agreements, shifting theresponsibility from the Oil and Gas Regulatory Authority (OGRA), which was originally tasked with management.
A fifth local refinery, Pak Arab Refinery (Parco), a joint venture between Pakistan and Abu Dhabi, did not participate in the agreements. In August 2026, the management of all five refineries — PARCO, PRL, NRL, Cnergyico, and ARL—reaffirmed their commitment to finalise the agreements by early September, expecting to unlock approximately USD 6 billion in investment. However, in September 2026, the federal cabinet mandated further amendments and set a deadline of October 1, 2026, for the refineries to sign Upgrade Agreements directly with the Ministry of Energy (Petroleum Division) instead of OGRA.
The new policy, which replaces all previous refining regulations, mandates that existing refineries enhance product quality, quantity, and mix through the planned upgrades.
