Prime Minister Shehbaz Sharif is expected to consider measures aimed at resolving long-standing issues in Pakistan’s Brownfield Refinery Policy as the Cabinet Committee on Energy (CCoE) meets on Tuesday to review proposed amendments that could affect planned refinery upgrade investments worth billions of dollars.
According to official documents, the committee will examine changes to the Pakistan Oil Refining Policy for Upgradation of Existing (Brownfield) Refineries, 2023, following consultations with stakeholders, including the Oil and Gas Regulatory Authority (OGRA), the Finance Division and representatives of the petroleum industry.
One of the proposed amendments has raised concerns within the refining sector over plans to retrospectively reduce deemed duty protection from 7.5% to 5%.
Industry representatives argue that the proposed reduction would unfairly penalise refineries for delays that they say were caused by the government rather than the companies themselves.
Government sources say the proposal is based on the view that refineries did not sign their Upgrade Agreements within the required timeframe.
Refinery officials dispute that assessment, saying all companies accepted the draft Upgrade Agreement in 2024 and were awaiting the government’s invitation to a formal signing ceremony at the Prime Minister’s House.
“The agreements were never delayed because of the refineries,” a senior industry official said. “The industry completed its part of the process and repeatedly requested the Petroleum Division, OGRA and other government forums to execute the agreements.”
The outcome of Tuesday’s meeting is expected to be closely watched by the refining industry, which has linked policy certainty to future investment decisions.