Pakistan welcomes energy sector investments as PM Khan visits Saudi Arabia

This undated photo shows a refinery of Pak Arab Refinery Limited (PARCO) in Pakistan. (Photo courtesy: PARCO/website)

• Pakistan to offer incentives to existing and new players to upgrade and set up oil refineries under a new policy
• Anticipates ‘strategic dialogue’ with state-owned Saudi companies for long term LNG supply arrangement

KARACHI: As Prime Minister Imran Khan leaves on a three-day visit to Saudi Arabia today, Friday, his special adviser on power and petroleum said the government would offer incentives to existing and new players, including state oil firm Saudi Aramco, to upgrade and set up oil refineries in Pakistan under a new policy.
Khan will embark on a three-day visit to Saudi Arabia on May 7 on the invitation of Saudi Crown Prince Mohammed bin Salman. In meetings with the Saudi leadership, Khan will cover all areas of bilateral cooperation including economics, trade, investment, environment, energy, job opportunities for the Pakistani workforce, and the welfare of the Pakistani diaspora in the kingdom.
“We would wholeheartedly welcome investment from Saudi companies in Pakistan’s energy sector,” Tabish Gauhar, special assistant to the prime minister on power and petroleum told Arab News, saying the country was in the process of rolling out a new oil refinery policy this year.
“Under the policy, various fiscal and other incentives shall be offered to existing and new players, such as Saudi Aramco, to upgrade and set up deep-conversion oil refineries in the country to further reduce our dependence on imported petrol and diesel,” Gauhar added.
During a visit to Islamabad in 2019 by Saudi Crown Prince Mohammed bin Salman’s, the two countries signed seven investment agreements worth $21 billion, including for a $10 billion Aramco oil refinery and a $1 billion petrochemical complex.
“As Pakistan is now one of the biggest LNG [Liquefied natural gas] importers regionally, we look forward to also having a strategic dialogue with state-owned Saudi companies for a long term supply arrangement on mutually beneficial terms and conditions,” Gauhar said.
He also expressed interest in Saudi participation in Pakistan’s renewable energy sector through upcoming auctions in wind and solar projects. The government has said by 2030 it plans to generate 30 percent of its electricity through renewables to cut down carbon emission and reduce reliance on imported fossil fuel.