The Pakistani government has approved the Brownfield Refining Policy, a $6bn initiative to modernize existing petroleum refineries and enhance energy security.

This policy, after six years of delays, aims to improve product quality, increase motor spirit (petrol) and high-speed diesel (HSD) production by 72% and 39%, respectively, while reducing furnace oil output by 63%.

Key measures include adopting Euro-V emission standards (10 ppm sulfur in fuels), tax incentives, foreign exchange accounts for machinery imports, and enhanced storage facilities.Refineries will upgrade to produce cleaner fuels and maximize value-added products.

The policy also establishes fiscal protections like a 10% customs duty on imported motor gasoline and diesel, with incentives tied to escrow accounts managed by Ogra.

Implementation requires legally binding Upgrade Agreements, milestone-based timelines, and third-party monitoring to ensure compliance and prevent defaulting refineries from accessing benefits.