Wednesday, October 04, 2023

Pakistan anticipates $10bn refinery agreement with Saudi Arabia in 2023

"KSA might also procure stakes in $7 billion Reko Diq project via feasible transaction model," says official

A view of an oil refinery. — Reuters/File
A view of an oil refinery. — Reuters/File

  • SIFC exploring options to secure around $7bn from Saudi Arabia.
  • KSA also likely to procure stakes in $7 billion Reko Diq project.
  • Agriculture corporate farm lease of 85,000 acres on cards too.

ISLAMABAD: Pakistan is anticipating the long-awaited $10 billion agreement with Saudi Arabia's oil titan, Aramco, for the construction of a refinery in Hub to reach its finalisation this year, The News has learnt.

Additionally, the Special Investment Facilitation Council (SIFC), a collaboration between the military and civilian authorities, is exploring options to secure approximately $7 billion from Saudi Arabia, granting the kingdom stakes in the Reko Diq project.

Sources have confirmed that the necessary policy incentives have been greenlit under the Greenfield Refinery Policy 2023, aiming to attract investment from Saudi Arabia.

"It is also expected that Saudi Arabia might procure stakes in the $7 billion Reko Diq project through a feasible transaction model with the help of Saudi Wealth Fund," said a top official.

The agriculture corporate farm lease of 85,000 acres of land to potential foreign investors is also on cards, sources told The News on Tuesday.

The SIFC will be developing a transaction pipeline to expedite investment in critical infrastructure.

Through government-to-government (G2G) transactions, the SIFC was told in recent weeks that the government would fast-track the G2G arrangements for energy, minerals, agriculture and IT.

The Framework for Inter-Governmental Commercial Transactions is in place.

The SIFC deliberated upon options for G2G arrangements for the privatisation of SOEs, wherever feasible.

The first transaction was already executed between the Karachi Port Trust (KPT) and AD Ports, UAE, for the container terminal in Karachi. The second transaction between the KPT and AD Ports for the outsourcing of operations of Bulk and General Cargo Terminal is to be finalised expeditiously. The SIFC will also explore options for technology-driven investments to boost productivity in the country.