A high-profile delegation of the Kingdom of Saudi Arabia on Sunday, inked 7 Memorandum of Understandings (MoUs) and investment agreement with Pakistan, costing around $20billion for boosting bilateral relations.
The details of the 7 MoUs signed between the two countries is as follows:
- Saudi Arabia to give assistance to Pakistan in the production of electricity and its generation
- Future cooperation between the Pakistan Standards and Quality Control Authority (PSQCA) and Saudi Standards, Metrology and Quality Organisation. PSQCA is a governed owned entity that advises the government on boosting industrial efficiency for improving the competitiveness of the products of Pakistan in the international markets. This MoU was signed by the foreign minister—Shah Mehmood Qureshi and his counterpart Adel bin Ahmed Al-Jubeir.
- The Kingdom would be setting up an integrated refinery petrochemical plant. It would establish $10 billion oil refinery in Gwadar, Baluchistan. As per the reports of Radio Pakistan, the capacity of this suggested oil refinery would be somewhere between 250,000-300,000 bpd. Also, Saudi Arabia would be studying investment opportunities in the petrochemical and refining sectors of Pakistan. The federal minister for Petroleum—Ghulam Sarwar and the Energy Minister of Saudi Arabia—Khalid Al-Falih signed for these MoUs.
- Promotion and cooperation for promoting sports between Pakistan and Saudi Arabia
- The Saudi Fund for Development (SFD), establishing path ways for bilateral support to the developing nations, would finance the supply of crude oil and petroleum products to Pakistan
- An MoU was inked in the division of renewable energy projects
- Another MoU was signed in the sector of mineral and mine resources from Baluchistan and the Khyber Pakhtunkhwa province
Besides these MoUs, the Kingdom has also agreed to provide Pakistan $3billion in foreign currency support for a year and a loan of $3billion in deferred payments for oil imports.
With the oil deal, Pakistan would be getting oil of $2.5million worth on a per month basis. This deal would remain intact for 3 months.
The advisor for commerce, textile, industry, production, and investment—Abdul Razaq Dawood said that this is a purely commercial investment. He also said that now the world would consider Pakistan a destination for making long term investments and that Pakistan is no more a security concern.