The Arab News, January 28 reported that the Pakistani government and Pakistan Refinery Limited (PRL) are in talks with Saudi Arabia, China, and several international financial institutions to raise funds for its refinery expansion and upgrading project (REUP). According to information, the REUP project is an important component of the government's "Brownfield Refinery Policy," which aims to upgrade all five refineries in the country into deep conversion refineries and enhance their crude oil processing capacity. The project aims to upgrade PRL's refinery in Karachi, increasing its daily crude oil processing capacity from 50,000 barrels to 100,000 barrels, while producing gasoline and diesel that meet the Euro V (European emission standard fifth stage) standards to meet environmental requirements. The project is expected to cost $2 billion, with debt financing accounting for about 60%-70%. Currently, the Pakistani side is negotiating with Saudi Arabia, China, and other international financial institutions. Analysts point out that this move aims to enhance Pakistan's refining capacity and product quality, reducing reliance on imported fuels. Data shows that Pakistan's oil product imports reached $16 billion in fiscal year 2025, accounting for more than 27% of its total imports. Currently, PRL has completed technical and commercial evaluations with engineering, procurement, and construction (EPC) bidders, and plans to sign a contract in the first quarter of 2026. According to sources, if the funding is secured, PRL aims to complete the financing by December, start construction in January 2027, and expect the project to be completed within 36 months. It is also known that the Pakistani government also plans to visit Saudi Arabia in the near future to introduce the project in detail.
Original: toutiao.com/article/1855664095207435/
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