Pakistan expects $10bn refinery deal with S Arabia this year

ISLAMABAD: Pakistan is expecting finalisation of the much-awaited $10 billion deal with Saudi Arabia’s oil giant Aramco for the construction of a refinery at Hub within the ongoing calendar year 2023, it was learnt.

The Special Investment Facilitation Council (SIFC), jointly run by the military and civilian side, is also contemplating options to secure around $7 billion from Saudi Arabia, which will get stakes in the Reko Diq project.

Top official sources confirmed to The News that the required policy incentives were approved under Greenfield Refinery Policy 2023 in order 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, said top official sources while talking to The News here 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 at 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.