$10bn oil refinery among 10 MoUs to be signed

$10bn oil refinery among 10 MoUs to be signed

ISLAMABAD – As anticipation mounts for the visit of Saudi Crown Prince Muhammad Bin Salman to Pakistan, the stage is set for the signing of around ten Memoranda of Understanding (MoUs), with a landmark $10 billion Oil refinery and petrochemical complex taking center stage.

The visit is hailed as a success of economic diplomacy between the two brotherly nations, opening new avenues of cooperation.

Ghulam Sarwar Khan, Federal Minister for Petroleum, expressed optimism on Friday, stating that the visit of Crown Prince Muhammad Bin Salman marks a shift in Pakistan’s approach, emphasizing mutual respect and national interests over personal relations. Under the vision of a new Pakistan led by Prime Minister Imran Khan, the focus is on fostering relationships based on shared objectives and economic development.

The proposed $10 billion oil refinery and petrochemical complex, subject to a feasibility study, is expected to have a capacity ranging from 250,000 to 300,000 barrels per day (bpd) or 11-13 million tons per annum. The detailed cost assessment will follow the feasibility study. Technical teams from Saudi Arabia have already visited Gwadar and Karachi, exploring the potential locations for this mega project.

Minister Ghulam Sarwar Khan highlighted the multifaceted benefits of the proposed refinery, including reliability in fuel supply, import substitution, and opportunities for exports. The project is anticipated to boost confidence among local and foreign investors, leading to technology transfer, skill enhancement, and Human Capital Development, consequently generating direct and indirect employment.

Saudi Arabia has also expressed keen interest in various sectors of Pakistan’s economy, including mines, minerals, fertilizers, phosphate, and LNG storage capacity. The investment interest extends to the petrochemical sector, labeled as a ‘game changer,’ with potential savings of $1.2 billion annually through import substitution.

In addition to the flagship oil refinery agreement, eight other MoUs are set to be signed, covering diverse sectors such as mineral development, renewable energy resources, drug control and smuggling, youth and sports, combating crime, and cultural cooperation. These agreements underscore the comprehensive nature of the bilateral cooperation between the two nations.

Minister Ghulam Sarwar Khan emphasized that today’s Pakistan is a confident and dynamic nation, focused on rebuilding and strengthening relations with traditional friends and allies. The country is positioned as a beacon of peace and stability, ready to facilitate commerce, trade, and foreign investment. As part of this effort, Pakistan is overhauling its visa regime, aiming to grant visas on arrival to nationals of more than a dozen countries.

Furthermore, Khan highlighted the positive developments in aviation, with Air France planning to resume services after an 11-year hiatus, echoing the earlier return of British Airways. The Minister concluded by affirming that Pakistan is led by an honest and visionary leadership committed to steering the country toward prosperity and international acclaim. The upcoming agreements with Saudi Arabia are poised to play a pivotal role in realizing this vision.