News Post
Saudi Arabia agrees timelines with Pakistan for investment of $21 billion
In January 2019, Saudi Aramco agreed to set up a $10 billion oil refinery in Pakistan’s deepwater port of Gwadar. In February, the two countries signed agreements on a a total of $21 billion in invstement, including LNG, power and mining projects.
In September 2019, officials of the two states met to review all the investment projects and agree upon a timeline to make noticeable progress on the list of investment projects. Feasibility and market studies on the refinery project are already underway.
The Saudi initial investment consists of an Aramco oil refinery project that will be constructed in Pakistan’s Balochistan province and house a petrochemical complex project at Gwadar deep-sea port. The proposed mega oil refinery and petrochemical complex to be set up by Saudi Arabia will help Pakistan with technology, skill enhancement and human capital development. It will also result in employment generation and development of downstream, allied sectors.
For other investments, the Saudis prioritized selling of LNG and investing in power projects, but also expressed interest in mining projects and other refining projects.
A meeting of the Pak-Saudi Supreme Coordination Council is tentatively scheduled for early 2020. The high-powered council was proposed by Saudi Crown Prince Mohammed bin Salman during the visit of Prime Minister Imran Khan to his country in October last year to create a high level institutional mechanism to monitor and implement key decisions taken for bilateral cooperation and investment.
The council consists of Ministers of Foreign Affairs, Defense, Defense Production, Finance, Energy, Petroleum, Water Resources, Information, Culture, Interior, Commerce, Trade and Investment and Human Resources from both countries.
Saudi Deputy Minster of Energy, Industry and Mineral Resources at the September meeting reiterated that the Kingdom want to make tangible progress on all projects: to take them to the next level of implementation before the Council meeting, stating that his leadership wanted to speed up work on all projects.
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