Pakistan Seeks US Funding for Refinery Upgrade Projects
Pakistan is looking to attract US financing for its refinery modernisation programme, as officials discuss energy cooperation and possible long-term supply arrangements with American counterparts.
At a meeting in Islamabad on October 26, Petroleum Minister Ali Pervaiz Malik briefed US Chargé d’Affaires Natalie Baker on the refinery upgrade programme and its potential to create investment opportunities for US financial institutions, according to reports of the meeting.
The discussions follow earlier engagements between Finance Minister Muhammad Aurangzeb and US EXIM Bank, where refinery upgrades were identified as a possible area for support. The Finance Ministry has also said that potential financing options for refinery modernisation were discussed with Honeywell Technologies and US export-credit institutions.
Refinery upgrades could require billions
Pakistan’s upgrade programme is intended to modernise existing refineries and improve their ability to produce higher-quality fuels. The government’s estimate for upgrading the country’s five existing refineries is around $6 billion over five years.
Four refineries — Attock Refinery, National Refinery, Pakistan Refinery and Cnergyico Petroleum — signed upgrade agreements with the government in September. The projects are expected to support the shift toward Euro-V fuel standards.
The agreements establish a framework for refinery projects and related incentives. They do not, by themselves, confirm that project financing has been secured. No US funding package or refinery investment commitment was announced in the reported October 26 meeting.
Energy cooperation also on agenda
The meeting also covered possible long-term energy supply contracts and US companies’ interest in supplying liquefied natural gas to Pakistan. The official readout described these as areas for cooperation; it did not announce a signed supply agreement.
For Pakistan, attracting external financing could help move refinery projects from agreements and planning toward implementation. The eventual pace will depend on project plans, financing arrangements and lenders’ assessments.
The talks are part of broader efforts to deepen Pakistan-US energy and commercial ties. For now, US support for refinery upgrades remains a potential financing avenue rather than confirmed funding.