KARACHI: Pakistan and the Kingdom of Saudi Arabia have finalized the Memorandum of Understand (MoU) for the construction of multi-billion dollar Saudi Aramco oil refinery in Gwadar deep seaport city, located in Balochistan province, officials said on Thursday.
Pakistan is expecting to sign a number of investment deals including the construction of mega oil refinery in the month of February in the presence of a high-level Saudi delegation, confirmed Information Minister Fawad Chaudhry.
“The oil refinery project is the biggest investment project of Saudi Arabia in Pakistan,” he added.
Pakistan and Saudi Arabia have lately expressed renewed interest in enhancing bilateral strategic and trade engagements while the Kingdom also pledged $3 billion in a financial assistant to help Pakistan out of its economic woes.
“A 15-member delegation of Saudi Arabia visited Gwadar from Karachi as part of the finalization process of the MoU for Aramco oil refinery,” Haroon Sharif, Minister of State and Chairman of Pakistan Board of Investment (BoI), told Arab News.
“We have finalized the MoU for the construction of Aramco oil refinery,” Sharif said adding that “overall directions have been agreed upon and the agreement will be signed at an ‘appropriate time’.”
Pakistani authorities expect $15 billion investment from Saudi Arabia after Prime minister Imran Khan chose the Kingdom for his maiden visit and consequently made two official visits.
Earlier, the BoI chief had said that “We are going to sign MoUs with Saudi Aramco and Acwa Power within few weeks. Saudi Aramco is going to set up oil refinery and petrochemical complex in Pakistan while Acwa Power will invest in Pakistan renewable energy sector”, Sharif informed.
As part of the investment plan, the Saudi Aramco will construct petrochemical complex housing multi-billion dollar oil refinery.
“I am expecting around $15 billion investment from Saudi Arabia in the next 3 years. The inflow of investment for oil refinery and petrochemical complex in Pakistan is estimated to be between $6 billion to $10 billion,” BoI Chairman told Arab News.
Pakistan hopes to attract more than $40 billion in Foreign Direct Investment (FDI) during the next five years. “We estimate that roughly around $40 billion investment will be made by these three countries (Saudi Arabia, UAE, and China) in the next three to five years,” Sharif had told Arab New during his recent interview.
During the recent visit of the Saudi delegation to Gwadar, the Chairman of Gwadar Port Authority, Dostain Khan Jamaldini, on Wednesday gave a briefing about the current developments including the port, progress on China-Pakistan Economic Corridor (CPEC) and Gwadar Master Plan.
Pakistan, KSA set to ink multi-billion dollar Aramco oil refinery deal
Pakistan, KSA set to ink multi-billion dollar Aramco oil refinery deal
- MoU for construction of mega oil refinery will be inked in February, says information minister
- Pakistan expects $15 billion investment from Saudi Arabia in the next 3 years
Pakistan strikes $4 billion deal to sell weapons to Libyan force, officials say
- Pakistan’s defense industry spans aircraft, vehicles, and naval construction
- The deal, spread over two-and-a-half years, includes JF-17 jets, officials say
KARACHI: Pakistan has reached a deal worth over $4 billion to sell military equipment to the Libyan National Army, four Pakistani officials said, despite a UN arms embargo on the fractured North African country.
The deal, one of Pakistan’s largest-ever weapons sales, was finalized after a meeting last week between Pakistan military chief Field Marshal Asim Munir and Saddam Khalifa Haftar, deputy commander-in-chief of the LNA, in the eastern Libyan city of Benghazi, said the four officials.
The officials, all involved in defense matters, declined to be identified because of the sensitivity of the deal.
Pakistan’s foreign ministry, defense ministry and military did not respond to requests for comment.
Any arms agreement with the LNA is likely to face scrutiny given Libya’s long-running instability following a 2011 NATO-backed uprising that toppled Muammar Qaddafi and split the country between rival authorities.
A copy of the deal before it was finalized that was seen by Reuters listed the purchase of 16 JF-17 fighter jets, a multi-role combat aircraft that has been jointly developed by Pakistan and China, and 12 Super Mushak trainer aircraft, used for basic pilot training.
One of the Pakistani officials confirmed the list was accurate while a second official said the arms on the list were all part of the deal but could not provide exact numbers.
One of the Pakistani officials said the deal included the sale of equipment for land, sea and air, spread over 2-1/2 years, adding it could also include the JF-17 fighter jets. Two of the officials said the deal was valued at more than $4 billion, while the other two said it amounted to $4.6 billion.
The LNA’s official media channel reported on Sunday that the faction had entered a defense cooperation pact with Pakistan, which included weapons sales, joint training and military manufacturing, without providing details.
“We announce the launch of a new phase of strategic military cooperation with Pakistan,” Haftar said in remarks broadcast on Sunday by Al-Hadath television.
Authorities in Benghazi also did not immediately respond to a request for comment.
The UN-recognized Government of National Unity, led by Prime Minister Abdulhamid Dbeibah, controls much of western Libya, while Haftar’s LNA controls the east and south, including major oilfields, and does not recognize the western government’s authority.
ARMS EMBARGO
Libya has been subject to a UN arms embargo since 2011, requiring approval from the UN for transfers of weapons and related material.
A panel of experts said in a December 2024 report to the UN that the arms embargo on Libya remained “ineffective.” The panel said some foreign states had become increasingly open about providing military training and assistance to forces in both eastern and western Libya despite the restrictions.
It was not immediately clear whether Pakistan or Libya had applied for any exemptions to the UN embargo.
Three of the Pakistani officials said the deal had not broken any UN weapons embargo.
One of the officials said Pakistan is not the only one to make deals with Libya; another said there are no sanctions on Haftar; and a third said Benghazi authorities are witnessing better relations with Western governments, given rising fuel exports.
PAKISTAN EYEING MARKETS
Pakistan has been seeking to expand defense exports, drawing on decades of counterinsurgency experience and a domestic defense industry that spans aircraft production and overhaul, armored vehicles, munitions and naval construction.
Islamabad has cited its Air Force’s performance in clashes with India in May.
“Our recent war with India demonstrated our advanced capabilities to the world,” military chief Munir said in remarks broadcast by Al-Hadath on Sunday.
Pakistan markets the Chinese co-developed JF-17 as a lower-cost multi-role fighter and has positioned itself as a supplier able to offer aircraft, training and maintenance outside Western supply chains.
Pakistan has also been deepening security ties with Gulf partners, signing a Strategic Mutual Defense Agreement with Saudi Arabia in September 2025 and holding senior-level defense talks with Qatar.
The Libya deal would expand Pakistan’s footprint in North Africa as regional and international powers compete for influence over Libya’s fragmented security institutions and oil-backed economy.
