Pakistan Anticipates a $10bn Oil Refinery Agreement with Saudi Arabia

Pakistan is anticipating a $10 billion agreement with Saudi Arabia for the construction of a new oil refinery in the country. However, the agreement is expected to be signed in the coming weeks.

Good news for Pakistan! They’re getting closer to sealing a big $10 billion deal with Saudi Arabia top oil company, Aramco. This deal is about building a big factory in a place called Hub. It looks like everything might be finalized by the end of this year between Pakistan and Saudi Arabia.

Also, there’s a group in Pakistan, called the Special Investment Facilitation Council (SIFC), which has folks from the army and regular government working together. They’re trying to get about $7 billion from Saudi Arabia. In return, Saudi Arabia might get some shares in a project called Reko Diq.

The refinery is expected to be built in the port city of Gwadar, which is part of the China-Pakistan Economic Corridor (CPEC). In addition, this means that the refinery will be well-positioned to serve both domestic and regional markets.

Special Grants To Investors

They’ve made some special rules to make it really attractive for Saudi Arabia to invest. They’re calling it the Greenfield Refinery Policy 2023. A high official thinks Saudi Arabia might also get some shares in the Reko Diq project through a smart deal with the Saudi Wealth Fund.

Also See: Pakistan on Track to Launch 5G Services by August 2024

They’re also thinking about letting foreign investors rent a big piece of land, around 85,000 acres, to grow stuff. The SIFC is planning to speed things up in terms of building important things like roads and buildings.

They’re doing deals directly between governments for things like energy, minerals, farming, and computer stuff. They’ve set up a plan for how to do this. However, they’re also looking into selling some government-owned companies to private folks if it makes sense.

They’ve already done one deal with a company from the UAE to run a special part of the port in Karachi. Another deal for a different part of the port is coming soon.

Moreover, they’re also thinking about using cool and artificial intelligence-driven technology to make Pakistan’s businesses even better.