ISLAMABAD – Pakistan and Saudi Arabia have finalised the memorandum ofunderstanding (MoU) for the construction of the multi-billion-dollar SaudiAramco oil refinery in Gwadar deep seaport city, officials said on Thursday.
Pakistan is expecting to sign a number of investment deals, including theconstruction of mega oil refinery, in the month of February in the presenceof a high-level Saudi delegation, confirmed Information Minister FawadChaudhry.
“The oil refinery project is the biggest investment project of Saudi Arabiain Pakistan,” he added.
Pakistan and Saudi Arabia have lately expressed renewed interest inenhancing bilateral strategic and trade engagements while KSA also pledged$3 billion in a financial assistant to help Pakistan out of its economicwoes.
“A 15-member delegation of Saudi Arabia visited Gwadar from Karachi as partof the finalization process of the MoU for Aramco oil refinery,” saidMinister of State and Board of Investment Chairman Haroon Sharif in aninterview with a foreign publication.
“We have finalized the MoU for the construction of Aramco oil refinery,”Sharif said, adding that “overall directions have been agreed upon and theagreement will be signed at an ‘appropriate time’.”
Pakistani authorities expect $15 billion investment from Saudi Arabia afterPrime Minister Imran Khan chose KSA for his maiden visit and consequentlymade two official visits.
Earlier, the BoI chief had said, “We are going to sign MoUs with SaudiAramco and Acwa Power within few weeks. Saudi Aramco is going to set up oilrefinery and petrochemical complex in Pakistan while Acwa Power will investin Pakistan renewable energy sector.”
As part of the investment plan, the Saudi Aramco will constructpetrochemical complex housing multi-billion-dollar oil refinery.
“I am expecting around $15 billion investment from Saudi Arabia in the next3 years. The inflow of investment for oil refinery and petrochemicalcomplex in Pakistan is estimated to be between $6 billion to $10 billion,”the BoI chairman stated.
Pakistan hopes to attract more than $40 billion in foreign directinvestment (FDI) during the next five years. “We estimate that roughlyaround $40 billion investment will be made by these three countries (SaudiArabia, UAE, and China) in the next three to five years,” Sharif had saidduring his recent interview.
During the recent visit of the Saudi delegation to Gwadar, Gwadar PortAuthority Chairman Dostain Khan Jamaldini on Wednesday gave a briefingabout the current developments including the port, progress onChina-Pakistan Economic Corridor (CPEC) and Gwadar Master Plan.