Pakistan to finalise $10 billion refinery agreement with Saudi Arabia soon

WEB DESK: In a highly anticipated move, Pakistan is on the brink of finalising a $10 billion agreement with Aramco, Saudi Arabia’s oil giant, for the construction of a cutting-edge refinery in Hub this year.

Simultaneously, the Special Investment Facilitation Council (SIFC), a joint effort between military and civilian authorities, is working on securing a substantial investment of around $7 billion from Saudi Arabia. This substantial investment would grant the Kingdom stakes in the Reko Diq project.

According to The News, reliable sources have confirmed that essential policy incentives have been given the green light under the Greenfield Refinery Policy 2023. This policy is strategically designed to attract significant investments from Saudi Arabia, marking a pivotal step in strengthening economic ties between the two nations.

Furthermore, there is strong anticipation that Saudi Arabia may acquire stakes in the $7 billion Reko Diq project through a viable transaction model facilitated by the Saudi Wealth Fund, as stated by a high-ranking official.

Plans are also underway to lease a vast agricultural corporate farm spanning 85,000 acres of land to potential foreign investors, underscoring Pakistan’s commitment to encouraging foreign participation in its economic landscape.

The SIFC is actively engaged in developing a streamlined transaction pipeline to expedite investments in crucial infrastructure projects.

Recent discussions within the SIFC have highlighted the government’s commitment to expediting government-to-government (G2G) arrangements, particularly in sectors such as energy, minerals, agriculture, and information technology.

The Framework for Inter-Governmental Commercial Transactions is firmly in place, further facilitating these endeavours.

Noteworthy progress has already been made in this regard, with the execution of the first transaction between the Karachi Port Trust (KPT) and AD Ports, UAE, for the container terminal in Karachi.

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Moreover, the second transaction between KPT and AD Ports, pertaining to the outsourcing of operations for the bulk and general cargo terminals, is set to be finalised promptly.

The SIFC is also actively exploring avenues for technology-driven investments aimed at enhancing productivity across the nation.

This strategic collaboration between Pakistan and Saudi Arabia, coupled with proactive initiatives by the SIFC, paints a promising picture for the future of economic development in the region.