As per reports, Pakistan is nearing the completion of a significant $14 billion contract with Saudi Arabia for the establishment of a new oil refinery. The Minister of State for Petroleum, Musadik Malik, disclosed that the contract is in its final stages, and there is also interest from some Gulf Cooperation Council nations to participate in the deal.
The proposed state-of-the-art oil refinery, with a budget of $14 billion, aims to enhance Pakistan’s capacity for crude oil processing. This development follows a $2 billion external financing package received by Pakistan from Saudi Arabia, with the funds being deposited into the State Bank of Pakistan. These Saudi deposits are expected to play a crucial role in bolstering Pakistan’s foreign reserves.
Previously, the absence of a clear oil refinery policy had impeded progress on an $8 billion investment plan by Saudi Arabia. However, with the imminent conclusion of the $14 billion oil refinery contract, Pakistan is taking significant strides to upgrade its energy infrastructure and foster stronger economic relations with Saudi Arabia.