Pakistan’s top investment body has approved a 435-kilometre pipeline project designed to transport refined petroleum products from Punjab province to the northwestern Khyber Pakhtunkhwa region, aiming to slash transport costs and bolster energy security.

The Machike-Thallian-Tarru Jabba White Oil Pipeline secured approval through the Special Investment Facilitation Council, a government-backed body designed to fast-track major infrastructure by coordinating between federal and provincial institutions.

Announced on Tuesday, June 23, the project creates a dedicated corridor across a massive swath of the country. It will link Machike, a major oil hub near Lahore, with Thallian near Islamabad and Tarru Jabba near Peshawar.

Pakistan relies heavily on trucks to haul fuel between depots and consumption centres. Officials said this road-dependent system is expensive, inefficient and highly vulnerable to supply disruptions.

"The White Oil Pipeline will establish a vital south-to-north corridor for white oil transportation across Pakistan," the SIFC said in a statement.

"Upon completion, the project will improve fuel supply efficiency, reduce reliance on road-based transportation, lower logistics costs, minimise fuel losses, and enhance the overall reliability of the country’s energy supply chain."

In the energy sector, "white oil" refers specifically to refined products like gasoline, diesel and jet fuel, rather than crude oil.

The SIFC, which previously signed a memorandum of understanding for the pipeline, coordinated among stakeholders to clear regulatory hurdles.

As fuel demand climbs and logistics costs pressure the economy, Islamabad has prioritised modernising its energy infrastructure. Government officials have promoted pipelines to ease highway congestion and reduce the environmental footprint of large-scale road transport.

The council expects the strategic project to create jobs and boost investor confidence by demonstrating Pakistan's ability to execute large-scale investments.

"The successful facilitation of the White Oil Pipeline reflects SIFC’s continued role in strengthening Pakistan’s business ecosystem," the statement said, noting it will help unlock investment and accelerate key infrastructure projects to support economic growth.