Rs2,000 per Marla rate is fixed by KPK government for acquiring 400 acres of land for the oil refinery to be developed in Karak by FWO.
All the paperwork for acquiring land has been concluded and the payments would be given to landowners in a couple of weeks. There was an agreement between KPK government and FWO for the construction of oil refinery. Peshawar Model City Township and Khyber Pakhtunkhwa China Investment Plan (KPCIP)-M1 City Nowshera, three hydropower plants in Chitral were also part of the agreement along with oil refinery. The investment in all four projects accounts for $10.86 billion.
Must read: Billion tree Tsunami project in KPK
FWO would develop oil refinery that would be worth $600 million at Neshpa District Karak as per the agreement. The refinery would produce 40,000 barrels each day. Such huge land is acquired just for an oil refinery because other business activities would also be conducted here. Also, cheap price is fixed for the land as the area is a desert.
Also, KPK government has signed contracts with various Chinese and Russian companies for development of oil refineries in the province. The underground oil reserves are enough to meet the demand of three oil refineries being established in KPK.
Per day KPK produce53,000 barrels of oil which is half of the total oil production in Pakistan. As there is no oil refinery in KPK, therefore, crude oil is transported to Attock or Karachi.
So the establishment of an oil refinery in KPK won’t just create employment opportunities it would improve the total availability of POL products in Pakistan.
Also due to political conflict, the previous KPK government was not able to develop an oil refinery in the province. Now after discussion on various sites for an oil refinery, Karak is decided as the location for oil refinery as oil wells are present here.