Wednesday, October 4, 2023

Govt to Finalize $14 Billion Oil Refinery Contract with Saudi Arabia

According to a report, Pakistan is close to completing a significant $14 billion contract with Saudi Arabia for a new oil refinery. Musadik Malik, the Minister of State for Petroleum, shared that the contract is almost finalized, and some Gulf Cooperation Council nations are also interested in being part of the deal.

The proposed modern oil refinery, costing $14 billion, aims to increase Pakistan’s capacity to process crude oil. This comes after Pakistan received $2 billion in external financing from Saudi Arabia, with the State Bank of Pakistan receiving the funds. These Saudi deposits will play a vital role in strengthening Pakistan’s foreign reserves.

Previously, a lack of an oil refinery policy had hindered progress on an $8 billion investment plan by Saudi Arabia. However, with the upcoming finalization of the $14 billion oil refinery contract, it appears that Pakistan is taking steps to improve its energy infrastructure and strengthen economic ties with Saudi Arabia.

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