According to reports, Pakistan is on the verge of finalizing a significant $14 billion contract with Saudi Arabia to build a new oil refinery. Musadik Malik, the Minister of State for Petroleum, revealed that the contract is in its final stages, and other Gulf Cooperation Council nations have also shown interest in participating in the deal.
The proposed state-of-the-art oil refinery, estimated at $14 billion, aims to enhance Pakistan’s capacity for crude oil processing. This development comes after Pakistan received $2 billion in external financing from Saudi Arabia, with the funds being deposited in the State Bank of Pakistan. These Saudi deposits will play a crucial role in bolstering Pakistan’s foreign reserves.
Previously, the lack of an oil refinery policy had impeded progress on an $8 billion investment plan by Saudi Arabia. However, with the imminent finalization of the $14 billion oil refinery contract, it is evident that Pakistan is taking significant strides to improve its energy infrastructure and foster stronger economic ties with Saudi Arabia.