Saudi Arabia to set up oil refinery in Pakistan: Report

Pakistan and Saudi Arabia are set to sign a Memorandum of Understanding (MoU) for the construction of a multi-billion dollar Saudi Aramco oil refinery in Gwadar, reported the Arab News.

Earlier this week, a cabinet member confirmed that Saudi Crown Prince Mohammad bin Salman would arrive in the country in the first week of February and an MoU for establishing a petro-chemical complex was still being worked out on the request of Riyadh.

Pakistan has already received $2bn in cash deposit from Saudi Arabia at an interest rate of 3.18pc while the third tranche of $1bn is due in the first week of February. The Saudi oil facility would also start rolling out this month with an average $274 million per month.

According to the report, it is expected that Pakistan will sign a number of investment deals including the construction of mega oil refinery in the month of February in the presence of a high-level Saudi delegation. The conformation to this effect was given by Information Minister of Pakistan Fawad Chaudhry.

“The oil refinery project is the biggest investment project of Saudi Arabia in Pakistan,” he was quoted as saying in the report.

Pakistani authorities expect $15 billion investment from Saudi Arabia after Prime minister Imran Khan chose the Kingdom for his maiden visit and consequently made two official visits.

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