Pakistan to build $10 billion oil refinery to alleviate energy shortages

In a significant move aimed at tackling Pakistan’s persistent energy crisis, the government, in collaboration with the Special Investment Facilitation Council (SIFC), has finalised a groundbreaking agreement.

According to the Information Ministry, this agreement entails the establishment of a state-of-the-art oil refinery valued at $10 billion within the country.

This strategic initiative forms a crucial part of the government’s broader efforts to combat energy shortages, which have been a major impediment to national growth.

Simultaneously, the government has embarked on ambitious petroleum sector projects aimed at exploring oil and gas reserves in coastal and marine regions of Pakistan. These ventures are expected to attract investments ranging from $5 to $6 billion, significantly enhancing the country’s energy infrastructure.

In addition to these developments, recent strides in renewable energy infrastructure include the installation of a 150-megawatt solar power plant in Sukkur and a one-megawatt solar power facility in Hunza, established through Public Private Partnerships (PPP). These projects underscore Pakistan’s commitment to diversifying its energy mix and reducing dependency on traditional fossil fuels.

Under the auspices of the SIFC, emphasis has been placed on prioritising hydropower, solar energy, and wind energy initiatives over coal and furnace oil, marking a pivotal shift towards sustainable energy solutions.

This multifaceted approach not only aims to bolster Pakistan’s energy security but also aligns with global efforts towards environmental sustainability and economic resilience.

The implementation of these initiatives is poised to catalyse significant advancements in Pakistan’s energy sector, fostering a more robust and sustainable economic future.