Saudi Arabia, China to finance $10bn oil refinery

ISLAMABAD: Saudi Arabia’s Crown Prince and Prime Minister Mohammed bin Salman (MBS) is slated to visit Pakistan this month (November) during which Islamabad hopes to get a $4.2 billion bailout package from Riyadh, diplomatic sources said Monday.

The Saudi leader’s rare visit is tentatively scheduled for November 21. Prince Salman’s special security detail is likely to arrive in Islamabad by the end of this week to review the security arrangements for final approval.

Moreover, Saudi Arabia is also expected to make solid investments in Pakistan. Sources also said that a number of Pakistan-Saudi petroleum agreements are being finalised for signing during the MBS visit. The government is also counting on a likely agreement that will help round up financial support from Saudi Arabia for the establishment of a state-of-the-art refinery in Gwadar.

The refinery, to be built at a cost of $10 billion, will be co-financed by the kingdom and China. According to sources, initially, Chinese companies will run the operations of the refinery after the completion of the project. The sources, however, added that so far things looked fine but a spike in political noise could affect the crown prince’s itinerary.