Pakistan is considering a proposal from Honeywell Technologies to modernise and expand the country's oil refining sector as part of efforts to increase domestic refining capacity, strengthen energy security and reduce reliance on imported petroleum products.

The proposal was discussed during a 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, the finance minister welcomed the initiative, describing it as a potential catalyst for improving Pakistan's refining infrastructure and supporting long-term industrial growth.

The discussions also covered Honeywell's advanced refining technologies, equipment solutions and potential financing options through the US Export-Import Bank (EXIM Bank), the US International Development Finance Corporation (DFC), export credit agencies and international financial institutions.

Pakistan's refining industry currently comprises PARCO, Attock Refinery Limited (ATRL), National Refinery Limited (NRL), Pakistan Refinery Limited (PRL) and Cnergyico. Much of the sector continues to rely on ageing hydro-skimming technology, resulting in a high output of furnace oil despite declining domestic demand, while significant investment is required to produce cleaner Euro-V compliant fuels.

Aurangzeb said modernising the refinery sector would strengthen Pakistan's energy security, reduce dependence on imported refined products and contribute to sustainable economic growth by improving the country's industrial base.