Saudi Arabia has reportedly given final approval for the construction of an oil refinery in Gwadar, Pakistan.
According to social media posts, the refinery will be built with an investment of $10 billion.
“Saudi Arab has given the final approval to construct a $10 Billion oil refinery in Gwadar, Pakistan,” say a post on X.
Another X user Mansoor Ahmed Qureshi has also posted the same development.
However, Saudi state-owned oil company Aramco has not officially confirmed the reports. Riyadh and Islamabad have also not issued any official statement on the matter so far.
The refinery on completion will process 300,000 barrels per day. Energy experts believe the project will help modernize Pakistan’s energy infrastructure and boost exports. Many see it as a major development aimed at stabilizing Pakistan’s weak economy, following the Saudi–Pakistan SMDA agreement.
Different Gulf nations including Qatar and UAE have already shown interest in investing in Pakistan. Report say these nations wanted to invest in Pakistan’s energy, agriculture, port, and shipping sectors. However, the Aramco’s move is considered major practical development.
Pakistan is facing severe internal security and political challenges. Opposition parties are dubbing the current civilian setup a hybrid government which is lacking public support. The majority believe that Pakistan’s military leadership is working behind the scenes to lure foreign investments. They see their role in bringing investment particularly from wealthy Arab nations. With the inclusion of the Army Chief in its ranks, the Special Investment Facilitation Council (SIFC) is believed to be part of the same strategy.
Contract:
Aramco had initially shown interest in construction of oil refinery in Pakistan in 2018. It signed the agreement with Pakistan in 2019. However, no progress was made on the project. Then in July 2023, four Pakistani state-owned petroleum companies signed the memorandum of understanding (MoU) to facilitate $10 billion Saudi investment in a new oil refinery at Gwadar. The four companies include the state-owned Oil and Gas Development Company Ltd (OGDCL), Pakistan State Oil (PSO), Pakistan Petroleum Ltd (PPL), and Government Holdings Private Ltd (GHPL).
Also Read:
