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KSA to Sign MoU for Setting Up $15b Aramco Oil Refinery in Pakistan

ISLAMABAD – Pakistan and Kingdom of Saudi Arabia (KSA) are set to sign a Memorandum of Understanding (MoU) for the construction of a multi-billion-dollar Saudi Aramco oil refinery in Gwadar, Pakistani newspaper Dawn News reported Monday.
Earlier this week, a cabinet member confirmed that Saudi Crown Prince Mohammad bin Salman would arrive Islamabad in the first week of February and a memorandum of understanding for the creation of a petrochemical complex, which is still in the pipeline will be signed.
Pakistan has already received $2 billion of Saudi Arabia’s cash deposit at an interest rate of 3.18 percent, while the third $1 billion is expected to be paid in the first week of February. The Saudi oil facility would also start operating this month with an average of $274 million a month.
According to Arab News, Pakistan is expected to sign several investments, including the construction of a mega oil refinery in February, in the presence of a senior Saudi delegation, the statement to this effect was given by the Minister of Information, Fawad Chaudhry.
The oil refinery project is Saudi Arabia’s biggest investment project in Pakistan, Arab News quoted Chaudhry as saying.
A 15-member delegation from Saudi Arabia has travelled to Gwadar from Karachi as part of the process of finalizing the Memorandum of Understanding for the Aramco oil refinery, Haroon Sharif, Minister of Agriculture said in a statement.
We have finalized the Memorandum of Understanding for the construction of the Aramco Oil Refinery, general guidelines have been agreed and the agreement will be signed at a convenient time, Sharif said.
The head of the board of investment said earlier, we will sign MoUs with Saudi Aramco and Acwa Power in a few weeks. Saudi Aramco will install an oil refinery and petrochemical complex in Pakistan, while Acwa Power will invest in the renewable energy sector in Pakistan.
I think Saudi Arabia will invest about $15 billion over the next three years. In Pakistan, investments in oil refineries and petrochemical complexes would be between $6 billion and $10 billion, BOI’s president told Arab News.
Last month, Pakistani Finance Minister Asad Umar announced that a new investment package from Saudi Arabia, which promises to be the biggest foreign investment in Pakistan’s history will be announced soon.
(Sahar News Monitoring Desk)

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