Islamabad, May 11, 2024 – Saudi Arabia has signaled its eagerness to invest in Pakistan’s refinery sector, marking a pivotal moment in bilateral economic cooperation.
Federal Minister for Petroleum, Musadiq Malik, disclosed Saudi Arabia’s interest during a briefing to the delegation of the Council of Economics and Energy Journalists (CEEJ).
Addressing the delegation, Minister Malik revealed that Saudi Arabia has agreed to invest in an integrated refinery in Pakistan for the first time, accompanied by a buyback guarantee—a testament to the growing economic ties between the two nations. The investment framework includes participation from Saudi Arabia, China, and Pakistan, with the establishment of a refinery equipped with a buyback option to facilitate the sale of surplus products in the global market.
The meeting, attended by CEEJ President Raja Kamran, Secretary Kashif Munir, Vice President Anjum Wahab, Treasurer Ashraf Khan, Secretary Information Masood Ahmad Siddiqui, and other esteemed members.
Elaborating on the investment structure, Minister Malik highlighted that the integrated refinery project entails an investment exceeding $10 billion, with the Chinese company designated as the engineering, procurement, and construction contractor, as well as responsible for operation and maintenance.
Furthermore, Minister Malik emphasized the strategic advantage of the integrated refinery, which is poised to produce chemical and diesel products. Recognizing Pakistan’s relatively modest domestic market size, he stressed the importance of exporting surplus chemical products to enhance foreign exchange reserves and stimulate economic activity.
Minister Malik lauded the expertise of the Saudi group in global oil and chemical trade, citing it as a pivotal factor in the decision-making process. The collaboration between Saudi Arabia, China, and Pakistan not only signifies a convergence of economic interests but also demonstrates a shared commitment to leveraging each other’s strengths for mutual benefit.
As Pakistan continues its quest for economic revitalization and energy security, the prospective investment from Saudi Arabia heralds a new era of cooperation and prosperity. With the integrated refinery project poised to become a cornerstone of Pakistan’s energy landscape, stakeholders eagerly anticipate the tangible benefits it will bring to the nation’s economy and its people.