Saudi Aramco to conduct feasibility study of Gwadar oil refinery, Pakistan’s commerce minister says

Abdul Razak Dawood, advisor to Prime Minister for Commerce, Textile, Investment, Industries and Production, is meeting with members of Saudi delegation in Islamabad. (AN photo)
Updated 04 October 2018
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Saudi Aramco to conduct feasibility study of Gwadar oil refinery, Pakistan’s commerce minister says

  • Final decision will be made by another senior Saudi delegation
  • Free Trade Agreement (FTA) between Pakistan and Saudi Arabia will be discussed with senior visiting delegation

KARACHI: Saudi Arabia will soon start a feasibility study of the proposed multibillion-dollar oil refinery slated to be set up in Gwadar, a port city in Pakistan's Baluchistan province, Commerce Minister Abdul Razak Dawood told Arab News.

“A Memorandum of Understanding will be signed shortly,” he said. 

“The members of (the Saudi) delegation visited Gwadar on Tuesday and they were satisfied with the arrangements they witnessed. The final decision will be made by another delegation at the most senior level,” Dawood said.

The six-member delegation from Saudi Arabia arrived in Pakistan on Sunday to explore investment opportunities in the country.

The delegation was briefed about the China Pakistan Economic Corridor (CPEC) projects linked to Gwadar port and other areas.

"The delegation showed interest in taking part in the bidding process for two power plants in Punjab, setting up a desalination plant, and wind- and solar-power plants in Balochistan,” Dawood explained.

Pakistan has also offered to strike a Free Trade Agreement (FTA) deal with the Kingdom, Dawood confirmed, adding that no firm decision had been taken as negotiations for such a deal would be carried out at a “very senior level.”

Pakistan’s commerce minister said that a delegation of senior Saudi officials will visit Pakistan soon in order to finalize the agreements. 

“The refining capacity of crude oil in Pakistan has declined over time. That is why Saudi Arabia has agreed to develop a refinery. They will import crude and refine it here,” Dawood added.

He said the feasibility study would be conducted by Saudi Aramco, and that the company would determine the exact cost of the refinery. “They have the expertise to undertake such studies — expertise that we lack," he clarified.

However, local media reported that Islamabad was expecting the refinery — slated to have a production capacity of 500,000 barrels per day and storage for up to 3 million tonnes — to cost around $9 billion.

Pakistan currently meets 85 percent of its oil requirement through imports. During the fiscal year 2017, the transport sector was responsible for 57 percent of oil consumption, while the power sector consumed 33 percent.

The commerce minister said that the work done by the preliminary delegation and local authorities was considerable, particularly given the short time span of the visit.

The flurry of action between Saudi Arabia and Pakistan comes after the newly elected Prime Minister Imran Khan chose Saudi Arabia for his first official overseas visit.

Following Khan’s visit to the Kingdom, an adviser to Saudi Crown Prince Mohammad bin Salman, Ahmad Agil Al-Khateeb, visited Islamabad on September 27.

Last week, Pakistan’s Information Minister, Fawad Chaudhry, announced that Pakistan and Saudi Arabia have signed “three grant agreements” for major investment in Pakistan, following a formal invitation by Pakistan to Saudi Arabia to become a third partner in CPEC projects.


Imran Khan’s party shutdown draws mixed response; government calls it ‘ineffective’

Updated 08 February 2026
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Imran Khan’s party shutdown draws mixed response; government calls it ‘ineffective’

  • Ex-PM Khan’s PTI party had called for a ‘shutter-down strike’ to protest Feb. 8, 2024 general election results
  • While businesses reportedly remained closed in Khyber Pakhtunkhwa, they continued as normal elsewhere

ISLAMABAD: A nationwide “shutter-down strike” called by former prime minister Imran Khan’s party drew a mixed response in Pakistan on Sunday, underscoring political polarization in the country two years after a controversial general election.

Khan’s Pakistan Tehreek-e-Insaf (PIT) opposition party had urged the masses to shut businesses across the country to protest alleged rigging on the second anniversary of the Feb. 8, 2024 general election.

Local media reported a majority of businesses remained closed in the Khyber Pakhtunkhwa (KP) province, governed by the PTI, while business continued as normal in other provinces as several trade associations distanced themselves from the strike call.

Arab News visited major markets in Islamabad’s G-6, G-9, I-8 and F-6 sectors, as well as commercial hubs in Rawalpindi, which largely remained operational on Sunday, a public holiday when shops, restaurants and malls typically remain open in Pakistan.

“Pakistan’s constitution says people will elect their representatives. But on 8th February 2024, people were barred from exercising their voting right freely,” Allama Raja Nasir Abbas Jafri, the PTI opposition leader in the Senate, said at a protest march near Islamabad’s iconic Faisal Mosque.

Millions of Pakistanis voted for national and provincial candidates during the Feb. 8, 2024 election, which was marred by a nationwide shutdown of cellphone networks and delayed results, leading to widespread allegations of election manipulation by the PTI and other opposition parties. The caretaker government at the time and the Election Commission of Pakistan (ECP) both rejected the allegations.

Khan’s PTI candidates contested the Feb. 8 elections as independents after the party was barred from the polls. They won the most seats but fell short of the majority needed to form a government, which was made by a smattering of rival political parties led by Prime Minister Shehbaz Sharif. The government insists the polling was conducted transparently and that Khan’s party was not denied a fair chance.

Authorities in the Pakistani capital deployed a heavy police contingent on the main road leading to the Faisal Mosque on Sunday. Despite police presence and the reported arrest of some PTI workers, Jafri led local PTI members and dozens of supporters who chanted slogans against the government at the march.

“We promise we will never forget 8th February,” Jafri said.

The PTI said its strike call was “successful” and shared videos on official social media accounts showing closed shops and markets in various parts of the country.

The government, however, dismissed the protest as “ineffective.”

“The public is fed up with protest politics and has strongly rejected PTI’s call,” Pakistan’s Information Minister Attaullah Tarar said on X.

“It’s Sunday, yet there is still hustle and bustle.”

Ajmal Baloch, All Pakistan Traders Association president, said they neither support such protest calls, nor prevent individuals from closing shops based on personal political affiliation.

“It’s a call from a political party and we do not close businesses on calls of any political party,” Baloch told Arab News.

“We only give calls of strike on issues related to traders.”

Khan was ousted from power in April 2022 after what is widely believed to be a falling out with the country’s powerful generals. The army denies it interferes in politics. Khan has been in prison since August 2023 and faces a slew of legal challenges that ruled him out of the Feb. 8 general elections and which he says are politically motivated to keep him and his party away from power.

In Jan. 2025, an accountability court convicted Khan and his wife in the £190 million Al-Qadir Trust land corruption case, sentencing him to 14 years and her to seven years after finding that the trust was used to acquire land and funds in exchange for alleged favors. The couple denies any wrongdoing.