Karachi, Saudi Arabia has committed to investing in Pakistan’s refinery sector, marking a significant development in the economic relationship between the two countries. This investment will involve the creation of an integrated refinery with a tripartite agreement that includes Chinese and Pakistani stakeholders, featuring a “buy back” guarantee for surplus products sold on the global market.

According to Council of Economic and Energy Journalists, Federal Minister for Petroleum, Mr. Musadiq Malik, announced the details during a briefing with the delegation of the Council. Malik outlined that the project, which involves an investment of more than $10 billion, will see a Saudi group collaborating with a Chinese company responsible for engineering, procurement, and construction, as well as operation and maintenance of th facility.

The new refinery will produce chemical and diesel products, with a strategic plan to export surplus production due to limited domestic demand. This approach is expected not only to meet local needs but also to generate significant foreign exchange savings and earnings for Pakistan. The involvement of Saudi Arabia, noted for its expertise in global oil and chemical trade, is seen as a crucial factor in the viability and success of this project.