How $9 billion oil refinery in Gwadar can change Pakistan’s economic destiny?
*Pakistan wants to build the oil refinery near the deep-water port of Gwadar to reduce petroleum product imports, a planning official said on Tuesday as the government hosted a Saudi delegation reported to be considering funding the project.*
The government of new Prime Minister Imran Khan wants to turn the Chinese-funded Gwadar port into “an oil city” to reduce dependence on imported refined fuel, Khusro Bakhtyar, minister for planning, development and reforms, told reporters.
Last month, Pakistan invited Saudi Arabia to invest in projects related to the China-funded Belt and Road infrastructure corridor, of which the Gwadar port is the crown jewel of some $60 billion in projects in Pakistan.
“An oil city concept has been developed for Gwadar,” Bakhtyar said, saying the country can reduce its $16 billion petroleum import bill if it imports cheaper crude oil to refine instead of more expensive finished products.
“If we set up a refinery and complete Pakistan’s requirement through our refinery this oil import bill can be cut by half. And God willing, we will do this.”
Khan made Riyadh his first foreign trip since he swept to power in elections in July, but there was no confirmation that the Saudi government might offer an economic lifeline.