The federal government has approved amendments to the Pakistan Oil Refining Policy 2023, paving the way for an estimated $5 billion to $6 billion investment in refinery modernization projects aimed at producing cleaner fuels and improving Pakistan’s energy security. The revised policy is expected to accelerate long-delayed brownfield refinery upgrade projects by addressing concerns raised by the refining industry over financial viability. Officials said refinery modernization is essential for increasing local refining capacity and meeting environmental standards. Additional duties of 10% on MS and 2.5% on HSD to be deposited into an OGRA-managed escrow account for refinery upgrade financing. Sales tax exemption on imported machinery and equipment for refinery modernization projects.