Saudi Arabia’s Energy Minister revealed the country’s plans to set up a $10 billion oil refinery in Pakistan. The Kingdom has previously offered Pakistan a $6 billion economic package
The Energy Minister of Saudi Arabia, Khalid al-Falih revealed that the country was looking to set up a $10 billion oil refinery in Pakistan’s Gwadar port. He said, “Saudi Arabia wants to make Pakistan’s economic development stable through establishing an oil refinery and partnership with Pakistan in the China Pakistan Economic Corridor (CPEC).”
Amid struggles with current account deficits caused due to towering oil prices, Pakistan has been looking for investors to manage the ongoing economic crisis. Reportedly, Saudi has previously offered to help Pakistan finance crude oil imports, included in a $6 billion package. On Saturday, Saudi Arabia’s Energy Minister confirmed that the Crown Prince Mohammad bin Salman would make a state visit to Pakistan in February for signing the agreement.
Pakistan’s Petroleum Minister, Ghulam Sarwar Khan asserted that by setting up “an oil refinery in Gwadar, Saudi Arabia will become an important partner in CPEC”. So far, China has set aside a $60 billion budget for the CPEC, aimed at enhancing trade by turning Pakistan into a linking route comprising power stations, upgraded railways, high capacity ports, and major highways.
Since Pakistani Prime Minister, Imran Khan assumed office in August, the country has accepted economic assistance packages from China, UAE and Saudi Arabia.
