Pakistan is looking forward to building an oil refinery near Gwadar port. The country has got this plan as it wants to reduce the import of petroleum products, as informed by a planning official on Tuesday while the government was hosting a Saudi delegation which as per reports is considering to fund this project.
The new government of Imran Khan wants to transform the Chinese funded Gwadar port into an “oil city” for lessening the country’s dependence on imported refined fuel, as told by the Minister for planning, development and reforms—Khusro Bakhtyar to the reporters.
As per the reports of local media, Saudi Arabia is considering investing in what media dub it as a “multi-billion-dollar refinery project”.
The planning, development and reforms minister confirmed neither about the project’s expected cost nor he confirmed anything about the Saudi investment.
Bakhtyar said that an oil city concept has been established for Gwadar. He also said that Pakistan could reduce $16 million import bill if it imports less costly crude oil to refine instead of importing more costlier finished products.
He further added that if the refinery is set up it would be sufficient for meeting Pakistan’s needs and the import bill could be reduced by half.
As per reports, Islamabad is expecting for a delayed payment agreement for Saudi oil to assist in rising up the foreign reserves and might even bridge a loan of nearly $2 billion, however, officials of both sides have so far not commented on the matter.