Oil refining sector sees $1 billion investment boost

ISLAMABAD: Cnergyico Pk Limited, the country’s largest refiner, is eyeing more than $1 billion in investment following the introduction of a new government policy aimed at stimulating the industry. Following its investment, Cnergyico plans to enhance its production of Euro-V compliant motor gasoline and high-speed diesel, simultaneously decreasing its furnace oil output in response to its declining and unpredictable demand. Pakistan has faced several economic challenges in recent times, including political instability, soaring inflation, a weakening currency, and declining foreign exchange reserves. These factors have eroded investor confidence, making local and foreign investors hesitant to allocate capital for major projects. In a move to counteract these trends, the government recently announced the Brownfield Oil Refinery Policy. This initiative, designed to stimulate investment in existing projects, follows the earlier introduction of the Greenfield Refinery Policy, which sought to draw foreign investment into the sector.