Pakistan to sign $10 billion agreement with friendly country
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Pakistan is anticipating the finalization of a long-awaited $10 billion agreement with Saudi Arabia's oil giant Aramco for the construction of a refinery in Hub within the current calendar year of 2023, according to sources.
The Special Investment Facilitation Council (SIFC), jointly managed by both the military and civilian sectors, is also exploring avenues to secure approximately $7 billion from Saudi Arabia, which would involve Saudi Arabia acquiring stakes in the Reko Diq project.
Relevant policy incentives have been approved under the Greenfield Refinery Policy 2023 to encourage Saudi Arabian investment, as confirmed by top official sources. There is also speculation that Saudi Arabia might acquire stakes in the $7 billion Reko Diq project through a viable transaction model with the assistance of the Saudi Wealth Fund.
Furthermore, plans are in place to lease 85,000 acres of agricultural corporate farm land to potential foreign investors, as indicated by authoritative sources. The SIFC is actively developing a transaction pipeline to facilitate investments in critical infrastructure. Government-to-government (G2G) transactions are being fast-tracked, especially in areas related to energy, minerals, agriculture, and IT, with the Framework for Inter-Governmental Commercial Transactions already in place.
The SIFC is also considering G2G arrangements for the privatization of State-Owned Enterprises (SOEs) where feasible. Notably, the first transaction has already been executed between the Karachi Port Trust (KPT) and AD Ports, UAE, for the Karachi container terminal, with the second transaction for outsourcing the operations of the Bulk and General Cargo Terminal in the finalization stage. Additionally, the SIFC aims to explore technology-driven investments to enhance productivity in the country.
