Pakistani government seek $9 billion investment from China for huge petrochemical complex

Pakistani government seek $9 billion investment from China for huge petrochemical complex

The Pakistani government has decided to seek investment from China for PARCO coastal refinery and petrochemical complex, a national daily reported.

In the upcoming 10th Pak-China JCC meeting, the PARCO coastal refinery project, among others, is the main project on part of Pakistan to be included in the agenda.

Pakistan has sought investment from China for becoming a shareholder in the state-of-art complex to be built at Hub, Balochistan, to the tune of $8-9 billion, the news report added. ------------------------------

Pakistan has also asked China to invest in other projects in this sector, including up-gradation of existing refineries, setting up of underground gas storages, and exploration and production activities.

Islamabad is also reportedly interested in bringing Beijing’s investment, under the CPEC umbrella, into national seismic surveys in frontiers and hard areas, such as some pockets of Balochistan and bordering areas of Pakistan, and Afghanistan.

Among other projects on the 10th JCC meeting agenda from Pakistan include LNG storage and exploration and production projects.

Earlier, Pakistan has also sought investment for the PARCO project from Saudi Arabia. In September 2020, Special Assistant to Prime Minister on Petroleum, Nadeem Babar, wrote a letter to the Ambassador of Saudi Arabia in Pakistan, Nawaf Saeed Al-Maliky, inviting Saudi Arabia to become a partner with PARCO in installing the PARCO coastal refinery. ------------------------------


Notably, the ambassador has conveyed to Pakistan that Saudi Arabia will positively consider the offer.

A feasibility report about the PARCO refinery and petrochemical complex is nearing completion in the meantime. Prime Minister Imran Khan is likely to inaugurate the project around April-May 2021, the news report added.

PARCO Coastal Refinery Limited (PCRL) has also been incorporated as a 100 percent subsidiary of PARCO, and the government of Pakistan has announced various incentives for the development of greenfield refinery projects, including exemption from all taxes for 20 years from the date of commercial production.