$10 billion in investment deals are likely to be made during MBS’s visit Saudi authorities are anticipating investing in a cutting-edge deep conversion refinery and a petrochemical complex.
ISLAMABAD:
The highly anticipated visit of Saudi Crown Prince Muhammad bin Salman to Pakistan on November 21 is expected to result in significant investment agreements and broad memorandums of understanding (MoUs) worth $10 billion, sources said on Monday.
Some of these about $4 billion projects have already received preliminary approval; however, further projects will be discussed and decided upon today (Tuesday) in a meeting presided over by the finance minister, Ishaq Dar.
If the two nations move forward with the plan to build an oil refinery in the country, a separate $12 billion investment is anticipated.
The de facto head of Saudi Arabia is also anticipated to reveal a further bailout package for Pakistan worth $4.2 billion, which includes $3 billion in extra reserves as well as an oil facility with deferred payment.
According to sources, the MBS visit would also herald the beginning of significant Saudi investments in Pakistan and the conclusion of numerous Saudi petroleum agreements. Along with the visit, a deal to build an oil refinery by KSA is anticipated.
At 4 o’clock today, a significant meeting will be presided over by Finance Minister Ishaq Dar. Important Saudi Embassy officials as well as representatives from the relevant Pakistani government departments will attend the meeting.
The Board of Investment (BOI) and the Saudi Ministry of Investment previously met for an hour and a half via video link. According to insiders, the deputy Saudi minister for investments also attended the conference.
energy refinery
More significantly, the sources claimed that the Saudi prince’s visit will also see investment in the construction of a cutting-edge deep conversion refinery and a petrochemical complex in Gwadar, which may be a game-changing move for Pakistan’s economy and its reliance on petroleum imports.
Prime Minister Shehbaz Sharif has also instructed the relevant agencies to finalise the refinery specifications and potential conditions in this regard.
Along with the $12 billion project, Pak-Arab Refinery Company (Parco) and Pakistan State Oil (PSO) would collaborate with Saudi Arabia’s Aramco. The sources claim that all circumstances and technical requirements will be met before the Saudi prince’s visit.
Pakistan will be able to produce its own petroleum products after the refinery is built, which is anticipated to happen in 2028.
The petroleum refinery project, which was put on hold in 2019, will be built on cutting-edge deep-conversion technology and introduced in Pakistan, which runs five major petroleum refineries and is currently planning for technological advancement and capacity expansion. These refineries typically use outdated process technologies.
An investment deal is also anticipated for the $5 million new road project from Nowshera.
The development of Islamabad’s King Salman Hospital is also set to receive a $500 million agreement. According to sources, an agreement with Saudi Arabia to spend $500 million on two hydroelectric projects in Azad Jammu and Kashmir is also anticipated.
Meanwhile, sources said that a deal might be reached over Saudi Arabia’s investment in the desalination project to supply Karachi with clean drinking water. The federal government has also been asked for financial support for this project by the Sindh government.
Furthermore, a contract for investment in the construction of a science park at the NED University of Engineering and Technology is anticipated to be signed by Saudi authorities. Costs for the project could reach $60–70 million.
