The Board of Directors of Pakistan Refinery Limited (PRL) has approved a loan facility worth Rs. 3.15 billion from Pakistan State Oil Company Limited (PSO). The decision was disclosed in a stock filing on Wednesday.

According to PRL, the loan will be utilized to finance the Front-End Engineering Design (FEED) for its Refinery Expansion and Upgrade Project (REUP). This project is a key initiative aimed at modernizing and expanding the refinery’s operations.

The filing also revealed that the loan includes an option for conversion into equity, subject to obtaining all necessary corporate and regulatory approvals at the appropriate time.