{
  "id": 6684871,
  "title": "UAs with refineries: PD sends summary to ECC for approval",
  "url": "https://urgent.news/2026/09/11/uas-with-refineries-pd-sends-summary-to-ecc-for-approval",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-11T01:52:43.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40438968/uas-with-refineries-pd-sends-summary-to-ecc-for-approval"
  },
  "original_language": "en",
  "account": "Islamabad: The Petroleum Division has submitted a draft Upgrade Agreement for review to the Economic Coordination Committee (ECC) in order to seek approval. This agreement pertains to refineries, existing or brownfield, under the amended Pakistan Oil Refining Policy for Upgradation of Existing/Brownfield Refineries, 2023. The Cabinet Committee on Energy (CCoE) approved these amendments on July 28, 2026, and the federal cabinet ratified them on August 10, 2026. The amended policy aims to incentivize refineries to undertake projects that increase production of Euro-V petroleum products, decrease furnace oil output, and enhance refinery efficiency.\n\nThe agreements are anticipated to bring in around $6 billion in investments for Pakistan's refining sector. Under the policy, refineries must sign Upgrade Agreements with the Petroleum Division or a designated entity. The Petroleum Division has appointed Inter State Gas Systems (ISGS) as the policy implementation entity. The ISGS will carry out key tasks such as executing Upgrade Agreements, managing Refinery Upgradation Accounts, supervising upgrade projects, engaging technical experts and auditors, and overseeing incentive payments from the Refinery Upgradation Accounts.\n\nA committee comprising the Secretary of Petroleum Division, Secretary of Law and Justice Division, Chairman of Oil and Gas Regulatory Authority (OGRA), and Chairman of Special Investment Facilitation Council (SIFC) was established to finalize the Upgrade Agreement. This committee held meetings to update an earlier agreement, which had been finalized by OGRA and refineries, to align it with the amended policy and new implementation arrangements. Stakeholders from various divisions and organizations, including Finance Division, National Coordination and Monitoring Committee (NCMC), SIFC, ISGS, and refineries, contributed to this process. Legal assistance was provided by the law firm Orr Dignam.\n\nThe draft Upgrade Agreement, which provides a unified contractual structure for refinery upgradation projects under the amended policy, was forwarded to the Law Division and Finance Division for formal comments on September 1, 2026. The Law Division confirmed that the agreement was appropriate and consistent with the Refining Policy. The Finance Division also provided its comments. The Petroleum Division reported that, to expedite the implementation of the amended policy, the draft Upgrade Agreement was finalized after a consultative process and is now being submitted to the ECC for consideration and approval.\n\nThe Cabinet was informed that refineries not signing Upgrade Agreements within the stipulated time frame of October 1, 2026, would face financial penalties. During the discussions, the Petroleum Division clarified that the amendments directed by the Cabinet Committee on Energy (CCoE) had been incorporated into the final draft of the amended policy. The Cabinet further decided that refineries must sign Upgrade Agreements with the Ministry of Energy (Petroleum Division) instead of OGRA within 45 days, instead of 60 days, that incremental incentives would be deposited into the Refinery Upgradation Account maintained by the Petroleum Division, policy implementation and monitoring functions would be transferred from OGRA to the Petroleum Division, and if an upgrade project lags behind, it would not be eligible for incentives until corrective measures are taken.",
  "summary": "ISLAMABAD: The Petroleum Division has sought approval of the Economic Coordination Committee (ECC) for a draft Upgrade Agreements to be executed with existing/Brownfield refineries under the amended Pakistan Oil Refining Policy for Upgradation of Existing/Brownfield Refineries, 2023. According to sources, the Cabinet Committee on Energy (CCoE), in its meeting held on July 28, 2026, approved…",
  "key_points": [
    "Petroleum Division submits Upgrade Agreement draft to ECC for approval",
    "Amendments to Pakistan Oil Refining Policy for Upgradation approved on Aug 10, 2026",
    "Expected $6 billion investment in Pakistan's refining sector"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}