ISLAMABAD: Pakistan is expecting to sign two memoranda of understanding (MoUs) for an oil refinery and petrochemical complex in the port city of Gwadar during the visit to Islamabad of Saudi Crown Prince Mohammed bin Salman on Saturday, the Pakistani petroleum minister said on Friday.
The deals will see Pakistan join hands with Saudi Aramco, the world’s top oil producer, to set up a state-of-the-art facility worth $10 billion, with a groundbreaking ceremony expected to be performed early next year.
The crown prince is due to arrive in Islamabad on February 16 on a two-day visit that is being seen as the seal on already strong ties between the historic allies. He is expected to sign a range of agreements worth up to $15 billion dollars, including for three power plants in Pakistan’s Punjab province and the oil refinery and petrochemical complex in the impoverished southwestern province of Baluchistan. .
“We are working with full speed on technical and feasibility studies for establishment of the oil refinery and petrochemical complex in Gwadar … and will perform the groundbreaking by early 2020,” Minister for Petroleum Ghulam Sarwar Khan told Arab News in an interview.
Once established, the project would help the South Asian nation cut its annual crude oil imports by up to $3 billion, in addition to creating thousands of jobs in Baluchistan province.
The country spends more than $16 billion each year on importing 26 million tons of petroleum products, including 800 million metric cubic feet Liquefied Natural Gas (LNG) from Saudi Arabia, the United Arab Emirates and other Gulf countries to fulfill its energy needs and cut its import bill.
Giving details about the proposed oil refinery, the minister said that it will have a per day capacity of 250,000 to 300,000 barrels per day and cost over $10 billion.
“Saudi authorities have asked us to complete all the initial work on the project on a fast-track as they want to set it up as early as possible,” he said.
Saudi technical teams, including Energy Minister Khalid Al-Falih, have visited Gwadar twice in recent months to examine the site for the oil refinery and petrochemical complex. They have also been briefed by Pakistani officials on security, and law and order in the area bordering Iran.
“We will ensure complete security of Saudi investment and people working on the project … and a detailed security plan for it has already been chalked out with help of the security agencies,” the minister said.
Pakistan currently has five oil refineries that fulfill half of its demand while the remaining is fulfilled through imports
Pakistan and Saudi Arabia have long maintained strong ties and Riyadh has repeatedly come to Islamabad’s financial rescue. Last year, the Kingdom offered Pakistan $3 billion in foreign currency support for a year and a further loan worth up to $3 billion in deferred payments for oil imports to help stave off a current account crisis.
Khan said that the Pak-Arab Refinery Company (Parco) of the UAE was also setting up a separate oil refinery at Khalifa Point, near Hub in Balochistan province.
“The work on this project is in the advanced stage now as land for it has been acquired and other formalities are being fulfilled expeditiously,” he said.
Exxon Mobil returned to Pakistan last month after 27 years and has started offshore drilling with $75 million initial investments, the minister said, adding: “All results of the drilling are positive so far and we expect huge oil and gas reserves to be discovered soon. More foreign companies are contacting us to invest in offshore drilling and exploration as we are offering them lucrative incentives.”
About the energy mix, he said the country was importing around 800 million metric cubic feet worth $3 billion and wanted to add more 200 mmcf in the next few months to meet increasing demand.
“Saudi Arabia is also interested in setting up reservoirs for LNG in Pakistan …. this is an ongoing economic cooperation between the two brotherly countries and more Saudi investment will come in Pakistan with the passage of time,” the minister added.
Pakistan to seal refinery deal with Aramco during Saudi crown prince visit
Pakistan to seal refinery deal with Aramco during Saudi crown prince visit
- Oil refinery in Gwadar will help save up to $3 bn per annum, petroleum minister says
- Pakistan imports petroleum products worth $16 bn each year
US sanctions four international companies for aiding Pakistan’s missile program
- US State Department announces sanctions against three Chinese companies and one based in Belarus
- State Department says companies supplied missile-applicable items to Pakistan’s ballistic, long-range missile programs
ISLAMABAD: The US State Department announced this week it has imposed sanctions on three Chinese companies and one Belarus-based company for supplying items to Pakistan’s ballistic missile program.
As per a press release, the State Department announced sanctions against China-based companies Xi’an Longde Technology Development Company Limited, Tianjin Creative Source International Trade Co. Ltd, Granpect Company Limited and the Belarus-based Minsk Wheel Tractor Plant.
“These entities have supplied missile‐applicable items to Pakistan’s ballistic missile program, including its long-range missile program,” a press release issued late Friday stated.
The State Department said Minsk Wheel Tractor Plant had worked to supply special vehicle chassis to Pakistan’s long-range ballistic missile program.
“Such chassis are used as launch support equipment for ballistic missiles by Pakistan’s National Development Complex (NDC), which is responsible for the development of Missile Technology Control Regime Category (MTCR) I ballistic missiles,” it said.
Washington alleged Xi’an Longde Technology Development Company Limited supplied missile-related equipment, including a filament winding machine, to Pakistan’s long-range ballistic missile program that was also destined for NDC.
“Filament winding machines can be used to produce rocket motor cases,” the State Department said.
It said the Tianjin Creative Source International Trade Co. Ltd. supplied missile-related equipment to Pakistan’s long-range ballistic missile program, including stir welding equipment.
It said the company’s supplies were likely destined for Pakistan’s Space and Upper Atmosphere Research Commission (SUPARCO), which develops and produces Pakistan’s MTCR Category I ballistic missiles.
It further said Granpect Company Limited worked with SUPARCO to supply equipment for the testing of large-diameter rocket motors.
“In addition, Granpect Co. Ltd. also worked to supply equipment for testing large-diameter rocket motors to Pakistan’s NDC,” it added.
The sanctions mean all property and interests in property of the companies in the US or in possession or control of American citizens are blocked and must be reported to the US Treasury Department’s Office of Foreign Assets Control (OFAC), the State Department said.
They also mean that all transactions by American citizens, or those within (or transiting) the US that involve any property or interests in property of the companies, are prohibited unless authorized by a general or specific license issued by OFAC or exempt.
Pakistan has so far not responded to the US State Department’s action.
Pakistani pacer Mohammad Amir sets sights on T20 World Cup after comeback
- Amir played his first T20 international match for Pakistan on Thursday after a nearly four-year hiatus
- Pacer says he feels his body is fitter compared to 2019 when he last played for Pakistan in a World Cup
ISLAMABAD: Pakistani fast bowler Mohammad Amir said this week he has set his sights on the upcoming T20 World Cup 2024, as he gears up to mark his return to international cricket after a nearly four-year hiatus.
The 32-year-old pacer played his first match on Thursday against New Zealand in Rawalpindi but did not bowl a single delivery as rain suspended play during the first over of the match.
Amir, one of Pakistan’s most prolific fast bowlers, retired in December 2020 after being dropped from the side. He changed his mind last month and decided to restart his career, which had also been stalled by a spot-fixing ban in 2010.
“The way the Pakistan Cricket Board (PCB) management brought me back, it is for a short-term goal, the [T20] World Cup,” Amir told PCB Digital in an interview on Friday. “And that is the biggest goal.”
The left-arm pacer pointed out that Pakistan had played in the semifinal of the T20 World Cup 2021 and competed in the final of the T20 World Cup in 2022. However, it had failed to “cross the line” and become world champions on both occasions.
“If that happens [Pakistan win the World Cup] it would be a huge achievement for me, to be a part of that team,” he said.
Amir said he feels he is much fitter compared to 2019 when he last represented Pakistan in a World Cup tournament.
“See, you cannot express yourself properly in the ground until you’re fit,” he said. “So I feel the way my body feels fresh right now, I can chip in more and prove beneficial to the team via my performance.”
The pacer credited his wife and children for helping him stay positive.
“She makes sure that all my focus is on cricket,” he said. “I think that always gives me energy and helps me to face whatever I have to.”
Pakistan face New Zealand in the second T20 fixture of the five-match series in Rawalpindi today, Saturday. The two sides will lock horns in Rawalpindi on April 21 before meeting for the remaining two fixtures in Lahore on April 25 and 27.
Teams:
Pakistan: Babar Azam (captain), Usman Khan, Abrar Ahmed, Iftikhar Ahmed, Mohammad Rizwan, Mohammad Amir, Muhammad Irfan Khan, Naseem Shah, Saim Ayub, Shadab Khan, Shaheen Shah Afridi
New Zealand: Michael Bracewell (captain), Mark Chapman, Josh Clarkson, Jacob Duffy, Dean Foxcroft, Ben Lister, Jimmy Neesham, Tim Robinson, Ben Sears, Tim Seifert, Ish Sodhi
Pakistan’s finmin discusses energy, tax reforms with senior World Bank official
- Pakistan has vowed to broaden its tax base, reform energy sector and privatize loss-making state-owned entities
- Pakistan’s finance minister is in Washington to attend spring meetings by the International Monetary Fund, World Bank
KARACHI: Pakistan’s Finance Minister Muhammad Aurangzeb underlined the government’s resolve to carry out reforms in the energy and tax sectors in his meeting with a senior World Bank official this week, the finance ministry said on Saturday, as Islamabad grapples with an economic crisis amid surging inflation and low foreign exchange reserves.
Reeling from a macroeconomic crisis, Pakistan has assured international financial institutions and bilateral partners it would take concrete measures to broaden its tax base, carry out reforms in the energy sector and overhaul loss-making state-owned enterprises (SOEs).
Aurangzeb has been in Washington since last week to participate in spring meetings organized by the IMF and World Bank. His tour is an important one for the South Asian country as Pakistan’s ongoing nine-month, $3 billion loan program with the International Monetary Fund designed to tackle its balance-of-payments crisis, expires this month.
Aurangzeb met Martin Raiser, the World Bank’s regional vice president for South Asia, on Friday to discuss the government’s economic reforms.
“Underlined the reform thrust of the government in the areas of energy, tax reforms and SOEs,” the finance ministry said. “Informed that government was pursuing short and long-term goals in these sectors.”
Aurangzeb said the World Bank’s focus on climate change, digitalization and human development aligns with Islamabad’s priorities, highlighting the government’s vision to realize the country’s true potential for economic growth.
“Agreed on the need for reforms in the agriculture sector, water management and waste-water treatment,” the ministry said.
Aurangzeb met World Bank’s President Ajay Banga on Tuesday during which he spoke about the government’s reforms in tax and energy sectors and highlighted Pakistan’s progress on privatization of government entities.
In an interview on Monday, the Pakistani finance minister had said Islamabad would seek a fresh three-year IMF program, adding that the government plans to continue with necessary policy reforms to rein in deficits, build up reserves and manage soaring debt servicing.
In a separate statement, the finance ministry said Aurangzeb met China’s Finance Minister Lan Fo’an on Friday. During the exchange, the Pakistani finance chief thanked his Chinese counterpart for Beijing’s regular rollovers which helped plug Pakistan’s external financing gaps.
“Informed that Pakistan was entering into a larger and extended program with IMF and looked forward to the support of China,” the ministry said, adding that he highlighted the government’s economic reforms in various sectors during his meeting with the Chinese official.
Pakistan to train 1 million youth annually to export skilled human resource to Gulf countries
- Islamabad is planning to roll out a new education policy next month, with a focus on vocational training and out-of-school children
- Educationists, however, say the real challenge for the government is to ensure implementation of the policy, focus on teacher training
ISLAMABAD: Pakistan’s government is working on a new education policy to impart technical skills to one million youth annually to export trained human resource to Saudi Arabia and other Gulf countries, an official said on Friday.
The cash-strapped South Asian nation of 241 million has been working on a holistic national education policy to cover technical training for the youth by enrolling over 2.5 million out-of-school children.
The Special Investment Facilitation Council (SIFC), a federal body led by Prime Minister Shehbaz Sharif to attract investment from foreign and domestic sources, has given specific targets to the education ministry to finalize a comprehensive policy to improve the education sector.
“This new policy aims to impart vocational training to at least one million youth per annum to export skilled workforce to Saudi Arabia and other Gulf countries,” Rana Mujtaba, a spokesperson for the Pakistani ministry of education and professional training, told Arab News.
“It will be rolled out in May.”
There are around 9 million overseas Pakistanis living and working in different countries, including 2.8 million in Saudi Arabia, who remit around $30 billion back home annually to support the country’s fragile economy.
“Majority of our overseas workforce is unskilled labor. Therefore, the government is now focusing on enhancing vocational capacity of the youth,” Mujtaba said.
In the National Education Policy 2017-2025, Pakistan aimed to raise its literacy rate from the existing 60 percent to 90 percent by 2025, narrow down the gender gaps, reduce rural and urban imbalance, improve quality of education, promote technical and vocational education with skill development programs, and ensure good governance. But all this has yet to be achieved.
Mujtaba said Pakistan’s vocational training institutes already had a “strong affiliation” with Saudi Arabia, where all training certificates were accepted.
“The SIFC that is chaired by the PM has given a general direction to the ministry to work on a new education policy to improve the sector’s performance,” he said.
The spokesperson dispelled the notion that the education ministry was working on the new education policy without taking provincial governments on-board, since education has primarily been a provincial subject in the South Asian country.
“The federal government is in fact supporting the provinces in improving the education sector. All provincial ministers and education secretaries are on-board as the federal ministry has sought inputs from all of them,” he said.
“This will be a holistic policy that will also address the issue of out-of-school children, improving the higher education’s standards, domestic and foreign scholarships for the students.”
Educationists and public policy experts said the government had already devised numerous policies and produced documents to improve the education sector, but it would lack in implementation of these plans.
“The silver lining in the new policy is that the government is for the first time focusing on out-of-school children, but there needs to be an effective mechanism in place with clear timelines to address this issue,” Taimur Bandey, an educationist, told Arab News.
“The government needs to allocate its resources for teachers training and upgrade libraries and laboratories in the institutions to improve the education standards.”
Pakistani PM orders authorities to expedite anti-smuggling operations amid economic crisis
- PM Sharif chairs high-level meeting to review progress on countrywide anti-smuggling measures
- Orders effective monitoring of the Afghan transit trade, action against smugglers and hoarders
ISLAMABAD: Prime Minister Shehbaz Sharif ordered law enforcement agencies to expedite Pakistan’s nationwide anti-smuggling campaign, state-run media reported this week, as Islamabad tries to navigate a tricky path to economic recovery.
Pakistan’s caretaker administration announced a countrywide crackdown against smuggling and black marketing in September 2023 as the South Asian country reeled from an economic crisis that has seen its foreign exchange reserves plummet, currency devaluate sharply and inflation rise to record highs.
PM Sharif’s government has vowed to continue the country’s anti-smuggling operations to ensure Pakistan makes steady economic progress.
“Prime Minister Muhammad Shehbaz Sharif has directed the law enforcement agencies to expedite the countrywide anti-smuggling campaign,” the state-run Radio Pakistan reported on Friday. It said the development took place during a high-level meeting chaired by Sharif in Islamabad on Friday to review the anti-smuggling operations in the country.
In October last year, Pakistan imposed a 10 percent processing fee on several items imported from Afghanistan under a transit trade agreement to stop the illegal entry of goods from the country. In the meeting on Friday, Sharif ordered authorities to ensure effective monitoring of the Afghan transit trade items to prevent their smuggling.
“He directed the customs authorities to conduct a third-party audit of the system that monitors Afghan transit trade,” state-run media said.
Authorities told Sharif during the meeting that a list of smugglers, hoarders and their facilitators has been prepared and provided to law enforcement agencies and provinces.
The Pakistani prime minister appreciated law enforcement agencies for taking effective action against smuggling and ordered authorities to enhance cooperation to crack down on the illegal activities.
