- September 14, 2026
- Posted by: Tresmark
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Agreements aimed at upgrading Pakistan’s domestic refineries have once again been delayed, despite the government’s recognition of the sector’s strategic importance, Attock Refinery Limited (ARL) CEO Adil Khattak said on Saturday.
Khattak said the draft Refineries Upgradation Agreements are now expected to be placed before the Economic Coordination Committee (ECC) for approval on September 14. This comes despite the refineries and Inter State Gas Systems (ISGS) having already reached consent on the agreements.
The ARL chief questioned why the agreements require ECC approval, noting that he had not previously seen similar arrangements subjected to the same approval process.
“The bureaucracy is still not being pushed to execute the long-delayed refinery upgradation,” Khattak said, raising concerns that continued delays could result in additional penalties being imposed on refineries before the agreements are eventually signed with ISGS.
He particularly criticised the treatment of ARL and National Refinery Limited (NRL), saying both companies had formally communicated their willingness to sign the upgrade agreements before the original April 2024 deadline.
According to Khattak, ARL is currently facing a daily penalty of around Rs7.5 million, while NRL is incurring approximately Rs10 million per day. He maintained that the companies should not be held financially responsible for delays arising from government procedures.
The prolonged delay could add further pressure on Pakistan’s refinery sector, which is expected to undertake major upgrades to improve fuel quality, increase production efficiency and reduce reliance on imported refined petroleum products.
Khattak urged the authorities to remove the remaining procedural hurdles and complete the agreements without further delay, arguing that the refineries have already demonstrated their readiness to proceed with the planned investments.
