Pakistan is considering a proposal by US-based Honeywell Technologies to modernise and expand the country’s oil refining sector in an effort to increase domestic refining capacity, improve fuel quality, and reduce dependence on imported petroleum products.
The proposal was discussed during a meeting in Washington, DC, between Finance Minister Muhammad Aurangzeb and a Honeywell delegation led by Vice President and General Manager Barry Glickman, according to an official statement issued on Tuesday. Aurangzeb welcomed the company’s interest in upgrading Pakistan’s refinery infrastructure, describing the initiative as a step towards strengthening the country’s energy security and supporting long-term economic growth.
Pakistan’s refining industry consists of five major operators—Pakistan Arab Refinery Company (PARCO), Attock Refinery Limited, National Refinery Limited, Pakistan Refinery Limited, and Cnergyico. While the sector plays a vital role in meeting the country’s fuel requirements, many refineries continue to rely on outdated hydro-skimming technology, resulting in the production of large quantities of furnace oil, demand for which has declined significantly in recent years.
The industry also faces several other challenges, including narrow refining margins, financial constraints in the energy sector, and the substantial investment required to upgrade facilities capable of producing cleaner Euro-V compliant fuels. Modernisation of existing refineries is considered essential to improve efficiency, enhance fuel standards, and align the sector with international environmental requirements.
During the discussions, Honeywell outlined its technology and equipment solutions that could support refinery upgrades. The two sides also explored potential financing options through institutions including the US Export-Import Bank (EXIM), the US International Development Finance Corporation (DFC), export credit agencies, and leading international banks.
Aurangzeb said the proposed collaboration could help strengthen Pakistan’s energy infrastructure, reduce reliance on imported refined petroleum products, and support industrial development. He noted that improving the country’s refining capacity would contribute to a more resilient energy sector while promoting sustainable economic growth through increased investment and modern technology. – ERMD