Daily Times

Pakistan and Saudi Arabia will sign a Memorandum of Understanding (MoU) for the construction of a multi-billion Saudi Aramco oil refinery in Gwadar, according to Saudi English daily Arab News. Pakistan has already received $2bn in cash deposit from Saudi Arabia at an interest rate of 3.18pc while the third infusion of $1bn is due in the first week of February. According to Arab News, it is expected that Pakistan will sign a number of investment deals including the construction of mega oil refinery in the month of February. The conformation to this effect was given by Information Minister Fawad Chaudhry who was quoted by Arab News saying,” The oil refinery project is the biggest investment project of Saudi Arabia in Pakistan.”

Minister of State and Chairman of Pakistan Board of Investment (BoI) Haroon Sharif apprised, “A 15-member delegation of Saudi Arabia visited Gwadar from Karachi as part of the finalisation process of the MoU for Aramco oil refinery…. “[W]e have finalised the MoU for the construction of Aramco oil refinery […] overall directions have been agreed upon and the agreement will be signed at an appropriate time,” Sharif added. He further stated that he was “expecting around $15 billion investment from Saudi Arabia in the next 3 years. The inflow of investment for oil refinery and petrochemical complex in Pakistan is estimated to be between $6 billion to $10 billion.”

Published in Daily Times, January 8^th 2019.