ISLAMABAD: Pakistan is evaluating a proposal from US-based Honeywell Technologies to modernise and expand the country’s oil refining sector, aiming to increase domestic refining capacity, improve fuel quality, and reduce dependence on imported petroleum products.
The proposal was discussed during a high-level meeting in Washington, D.C., 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.
During the meeting, Aurangzeb welcomed Honeywell’s proposal, describing it as a significant opportunity to strengthen Pakistan’s downstream petroleum industry. He noted that upgrading refinery infrastructure would enhance the country’s refining capabilities, improve energy security, and lower reliance on imported refined fuels.
Pakistan’s refining sector comprises five major operators: Pakistan Arab Refinery Company (PARCO), Attock Refinery Limited (ATRL), National Refinery Limited (NRL), Pakistan Refinery Limited (PRL), and Cnergyico. However, the industry continues to face structural challenges, with most refineries relying on ageing hydro-skimming technology that produces a high proportion of furnace oil—a product whose domestic demand has declined sharply in recent years.
The sector also faces compressed refining margins, liquidity constraints within the energy supply chain, and the need for substantial capital investment to upgrade facilities for the production of cleaner Euro-V compliant fuels.
In addition to refinery upgrades, discussions covered Honeywell’s advanced refining technologies and equipment, along with potential financing options through the Export-Import Bank of the United States (US EXIM Bank), the US International Development Finance Corporation (DFC), export credit agencies, and leading international financial institutions.
Aurangzeb stressed that the proposed collaboration could play a key role in advancing Pakistan’s energy security, supporting industrial development, and promoting sustainable economic growth while helping modernise the country’s refining infrastructure.
