Gwadar: Saudi Arabia has planned to set up a $10bn oil refinery in Pakistan’s port of Gwadar, the Saudi energy minister announced at the Indian Ocean port that is being developed with the help of China.
Pakistan is in dire need to attract foreign investment and support to handle the fallen economy that has partly caused increase in oil prices and depreciation of the currency.
Saudi Arabia offered Pakistan a $6bn package that was a help to finance crude imports and to bring Pakisatn out o the immediate payment crisis.
“Saudi Arabia wants to make Pakistan’s economic development stable through establishing an oil refinery and partnership with Pakistan in the China Pakistan Economic Corridor,” Saudi Energy Minister Khalid al-Falih told news correspondents in Gwadar.
He said Crown Prince Mohammad bin Salman will come to Pakisatn in February to formally sign the agreement. The minister also informed that Saudi Arab will invest in many other sectors too.
“With setting up of an oil refinery in Gwadar, Saudi Arabia will become an important partner in CPEC,” Pakistan Petroleum Minister Ghulam Sarwar Khan said.
The Saudi news agency SPA earlier told that Falih met Pakistan’s petroleum minister and Maritime Affairs Minister Ali Zaidi in Gwadar to discuss the situations and measures to be taken to invest in sectors such as refining, petrochemicals, mining and renewable energy.