ISLAMABAD: Pakistan’s Petroleum Minister Ali Pervez Malik said Sunday that the country expects energy companies to sign $5 billion investment agreements next month to upgrade its outdated oil refineries, as the government moves to attract major foreign investment in the energy sector.
Malik said the government would now move from initial memorandums of understanding (MoUs) to official investment agreements with companies interested in modernising Pakistan’s refinery infrastructure.
The minister said Pakistan had not invested enough in its refinery sector during the past seven decades, leaving the country with old and low capacity hydro skimming refineries. He said the lack of a proper refinery policy had also prevented investment in advanced deep conversion facilities.
Malik said a new refinery policy had been approved with his support and through the Cabinet Committee on energy led by Prime Minister Shehbaz Sharif. The policy aims to encourage investment and help upgrade the country’s ageing refinery system.
He also announced that Turkish Petroleum, Türkiye’s state owned oil and gas company involved in exploration and production activities, would begin offshore drilling in Pakistan’s territorial waters during September and October.
According to Malik, the offshore drilling project could attract an investment of around $120 million to $130 million. He said successful oil discoveries could help Pakistan reduce its dependence on imported energy.
The minister added that several international companies had also shown interest in exploring oil reserves on land in Pakistan. Malik said consumers could receive positive news about petroleum prices within the next two days if global oil prices remained stable.
He explained that OGRA determines fuel prices based on the average international oil prices over seven days. Malik said oil prices remained high globally and in Pakistan due to recent economic pressures.
He recalled that neighbouring countries also experienced fuel shortages during tensions between Iran and the United States, with some motorists receiving limited fuel after showing identification documents.
Malik said Prime Minister Shehbaz Sharif had fulfilled commitments regarding the petroleum levy, adding that the levy had neither been increased nor reduced.
Separately, Malik called for discussion on transferring more power and authority to local governments. He said any constitutional changes should follow the legal process and should be made in Pakistan’s best interest.
