Islamabad, July 28: In a major step toward modernizing Pakistan’s energy sector, the federal cabinet has approved amendments to the Oil Refining Policy, clearing the way for the production and nationwide rollout of Euro-V standard fuels.
The revised policy is aimed at encouraging domestic refineries to upgrade their facilities through fiscal incentives and regulatory support, enabling them to produce cleaner and more environmentally friendly fuels that meet international Euro-V emission standards.
Officials said the transition will significantly reduce harmful emissions from vehicles, improve air quality, and lessen Pakistan’s dependence on imported refined petroleum products. The policy also seeks to strengthen the country’s refining capacity and enhance long-term energy security.
The amendments include measures designed to facilitate refinery modernization projects, allowing operators to adopt advanced technologies while improving fuel efficiency and operational performance. Authorities believe the reforms will attract fresh investment into the petroleum sector and support sustainable industrial growth.
Industry stakeholders welcomed the cabinet’s decision, describing it as a long-awaited reform that will align Pakistan’s fuel standards with global environmental practices. However, they stressed the importance of timely implementation and consistent government support to ensure refinery upgrades are completed without delays.
Energy experts noted that the successful rollout of Euro-V fuels would not only benefit consumers through cleaner fuel options but also improve Pakistan’s environmental footprint and competitiveness in the regional energy market. The government expects the policy changes to accelerate modernization across the refining industry in the coming years.
