Pakistan and Saudi Arabia have held talks on widening their cooperation in the petroleum, energy and mining sectors. The discussions covered strategic oil storage, refinery upgrades and higher supplies of liquefied petroleum gas (LPG).
The talks took place between Federal Minister for Petroleum Ali Pervaiz Malik and Dr Rajeh bin Tami Al-Baqami, Saudi Arabia’s newly appointed ambassador to Pakistan. The meeting centred on possible Saudi investment in Pakistan’s energy infrastructure and on ways to deepen commercial links between the two countries.
Tax-neutral bonded policy and oil storage plans
Malik told the ambassador that Pakistan values its long-standing strategic relationship with Saudi Arabia and remains committed to expanding cooperation in key economic sectors. He also referred to his recent visit to Riyadh, where he passed on a message of solidarity and affection from Pakistan’s leadership to Prince Abdulaziz bin Salman Al Saud.
Also read: Saudi Arabia to store crude oil in Singapore caverns
The minister said Pakistan has approved a tax-neutral bonded policy modelled on international energy hubs such as Fujairah and Singapore. Under the framework, Saudi companies could set up commercial oil reserves in Pakistan without local tax liabilities. He said this could help them spread the risks of maritime transit through the Strait of Hormuz and Bab Al Mandeb Strait, while improving access to Asian markets.
Malik added that strategic storage facilities would give Saudi Arabia more flexibility in managing supply routes and reaching regional markets.
Hub refinery complex and refinery upgrade programme
Malik also outlined plans for a major petroleum storage and refining complex at Hub, Balochistan, being developed under the guidance of Technip Energies UK. The proposed facility has the backing of the Prime Minister and the Chief of Defence Forces, and it would be able to accommodate Very Large Crude Carriers. He said it could strengthen Pakistan’s position as a regional energy corridor serving Central Asian and Chinese markets.
The minister also pointed to the ongoing refinery upgrade programme, which aims to modernise domestic refining, improve operational efficiency and move towards Euro 5 fuel standards. He said it offers significant openings for Saudi investment and participation in the refining sector.
Crude and LPG coordination with Saudi Aramco
Malik thanked Saudi authorities at Yanbu port for giving priority to crude oil shipments bound for Pakistan during recent disruptions in global markets. He also discussed coordination with Saudi Aramco to explore larger purchases of crude cargoes and dedicated LPG shipments. He linked this to an expected rise in domestic gas demand during the winter season.
Both sides stressed that the strong defence and strategic partnership between the two countries provides a basis for wider regional peace, stability and economic cooperation.
Dr Rajeh bin Tami Al-Baqami expressed Saudi Arabia’s deep appreciation for Pakistan’s longstanding support. He said the two countries stand together in all circumstances, and that their defence and energy frameworks aim to promote peace, stability and economic growth across the region.
The ambassador also announced that the Saudi Embassy in Islamabad has introduced same-day processing of visa applications for Pakistani citizens. The move is intended to ease travel and boost business, cultural and people-to-people exchanges.
Malik invited Saudi Vice Minister of Mining Khalid al-Mudafier to take part in the Pakistan Minerals Investment Forum, scheduled for Islamabad on November 12 and 13. He said the event would open further opportunities for cooperation and investment in the minerals sector.
Both sides committed to deepening their long-standing brotherly ties through greater cooperation, investment and mutually beneficial partnerships in energy and petroleum.
