PKONWEB/BE2C2 Report — Pakistan expects approx $40 billion investment by three countries (Saudi Arabia, UAE, and China) in the next three to five years, officials said on Thursday.
According to these officials, Pakistan and the Kingdom of Saudi Arabia have finalized the Memorandum of Understand (MoU) for the construction of multi-billion dollar Saudi Aramco oil refinery in Gwadar deep seaport city, located in Balochistan province.
Pakistan is expecting to 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, confirmed Information Minister Fawad Chaudhry to Arab News.
“The oil refinery project is the biggest investment project of Saudi Arabia in Pakistan,” he added.
“A 15-member delegation of Saudi Arabia visited Gwadar from Karachi as part of the finalization process of the MoU for Aramco oil refinery,” Haroon Sharif, Minister of State and Chairman of Pakistan Board of Investment (BoI), told Saudi media reps in Pakistan.
“We have finalized the MoU for the construction of Aramco oil refinery,” Sharif said adding that “overall directions have been agreed upon and the agreement will be signed at an ‘appropriate time’.”
The high level Saudi business delegation to Gwadar was led by Ahmad Al-Gamdi, adviser of minister of energy, investment and mineral resources, including several businessmen and members of the Saudi Council of Chambers, reported Saudi Gazette.
This was the first high profile visit of a Saudi business delegation to the Port of Gwadar. Saudi Ambassador to Pakistan Nawaf Saeed Al-Malki accompanied the delegation.
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.
The report quoted BoI chief stating, “We are going to sign MoUs with Saudi Aramco and Acwa Power within few weeks. Saudi Aramco is going to set up oil refinery and petrochemical complex in Pakistan while Acwa Power will invest in Pakistan renewable energy sector”, Sharif informed.
As part of the investment plan, Saudi Aramco will construct petrochemical complex housing multi-billion dollar oil refinery–the development comes as Aramco seeks to build up some downstream assets including petrochemical production locally and globally before going for its planned IPO in 2021, Khalid Al-Falih, the country’s energy minister, said in November.
Related Article: Saudi Aramco to Go for IPO After Building Up Value-Added Downstream Assets Worldwide
“I am 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,” BoI Chairman told Arab News.
Pakistan hopes to attract more than $40 billion in Foreign Direct Investment (FDI) during the next five years. “We estimate that roughly around $40 billion investment will be made by these three countries (Saudi Arabia, UAE, and China) in the next three to five years,” Sharif had told Arab New during his recent interview.
During the recent visit of the Saudi delegation to Gwadar, the Chairman of Gwadar Port Authority, Dostain Khan Jamaldini, on Wednesday gave a briefing about the current developments including the port, progress on China-Pakistan Economic Corridor (CPEC) and Gwadar Master Plan.
Nawaf said the Kingdom is eager to invest in CPEC projects, the details of which will be announced soon.
Fahim Alhamid, advisor of Minister of Media, who also accompanied the delegation said the Gwadar project is full of investment opportunities and the Saudi delegation’s visit was a unique opportunity to have firsthand information about them.