ISLAMABAD: Pakistan is set to witness one of its largest energy-sector investments as SPEC Refinery Pvt Ltd advances plans to establish the country’s first deep-conversion greenfield refinery at Hub, Balochistan, with an estimated investment of $4.5 billion.
The development was discussed during a meeting between Federal Minister for Commerce Jam Kamal Khan and a delegation of SPEC Refinery Pvt Ltd led by its Chairman, Zafar Sheikh, according to an official statement issued on Wednesday.
During the meeting, the delegation briefed the minister on the project’s progress and underscored its strategic significance for Pakistan’s energy sector. The refinery is expected to enhance national energy security, reduce dependence on imported refined petroleum products, and stimulate industrial growth in the country.
The proposed facility will utilize state-of-the-art deep-conversion technology designed to maximize the production of high-value petroleum products while processing a broad range of crude oil grades sourced from international markets. The advanced refining configuration is expected to improve efficiency and increase the output of cleaner, higher-value fuels.
The company requested government support in implementing the Greenfield Refinery Policy and sought expedited approval of the remaining regulatory requirements from the Federal Board of Revenue (FBR) to ensure timely execution of the project.
According to the delegation, the refinery represents a major long-term investment in Pakistan’s energy infrastructure and could serve as a catalyst for the development of downstream petrochemical industries. Initial groundwork has already commenced, while detailed implementation strategies are currently being finalized.
Chairman Zafar Sheikh informed the minister that the project is expected to generate approximately 2,000 direct and indirect employment opportunities in Hub and surrounding areas during both the construction and operational phases. He noted that the refinery would contribute significantly to regional economic development through job creation, skills enhancement, technology transfer, and industrial expansion.
Welcoming the investment, Commerce Minister Jam Kamal Khan emphasized Pakistan’s strategic location at the crossroads of South Asia, Central Asia, the Middle East, and Western China, positioning the country as an attractive destination for large-scale industrial and energy projects.
He highlighted Pakistan’s growing domestic market of over 250 million people, expanding trade corridors, and improving connectivity initiatives as key advantages for transforming the country into a regional hub for trade, energy, logistics, and manufacturing.
“Pakistan possesses tremendous untapped potential in refining, petrochemicals, logistics, and value-added manufacturing. Strategic projects such as the Hub refinery can play a vital role in strengthening industrial capacity, enhancing energy security, creating jobs, and attracting long-term foreign and domestic investment,” the minister said.
Jam Kamal further reaffirmed the government’s commitment to facilitating investments that support economic growth, industrial modernization, import substitution, and export promotion.
The delegation also shared its long-term vision for establishing associated petrochemical facilities, including the production of industrial feedstocks and value-added products aimed at supporting Pakistan’s manufacturing sector and creating new export opportunities.
Both sides agreed on the importance of strong public-private sector collaboration to accelerate industrial investment, strengthen the country’s energy infrastructure, and unlock Pakistan’s broader economic potential.
The proposed Hub refinery is expected to be a landmark project for Pakistan’s refining industry, potentially reducing the country’s import bill, improving fuel self-sufficiency, and laying the foundation for a more integrated petrochemical value chain in the years ahead.
