Pakistan, KSA to discuss feasibility of $10 bn oil refinery on April 15

Saudi Arabia’s Minister of Energy Khalid A Al-Falih and Pakistan Petroleum Minister Ghulam Sarwar Khan heading their respective countries in delegation level talks to discuss prospects of oil refinery and development of Gwadar in a meeting held in Gwadar in January 2019. (Twitter photo)
Updated 11 April 2019
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Pakistan, KSA to discuss feasibility of $10 bn oil refinery on April 15

  • Refinery and petrochemicals project to be constructed by oil giant Saudi Aramco in Pakistani coastal town of Gwadar
  • Groundwork on project expected to start within 18 months after feasibility study is completed

KARACHI: Pakistan and oil giant Saudi Aramco are all set to meet next week to discuss the feasibility of a $10 billion oil refinery project to be constructed in Pakistan’s coastal town of Gwadar, the country’s board of investment said.

Saudi Crown Prince Mohammed bin Salman visited Pakistan in February and signed investment agreements worth over $20 billion, including a $10 billion refinery and petrochemicals complex in Gwadar where China is building a commercial deepwater port.
The oil refinery will have the capacity to produce 250,000-300,000 barrels per day. Groundwork on the project is expected to start within 18 months after the feasibility study is completed.
Haroon Sharif, the chairman of the Pakistan Board of Investment, said technical teams that would carry out the feasibility study had been formed.
“A technical team comprising 6-7 officials from the ministry of petroleum, board of investment and Pakistan State Oil will leave for the Kingdom on April 15, 2019, to attend a workshop,” he said.
Sharif said Khalid A. Al-Falih, the Saudi minister for energy and chairman of the board of Saudi Aramco, would inaugurate the workshop, arranged by Saudi Aramco so teams from both countries “could understand what technical work needs to be done and how.”
Gwadar, in the southwestern Balochistan province, is seen as the future crown jewel of the China-Pakistan Economic Corridor, a flagship of Beijing’s Belt and Road initiative to build a new “Silk Road” of land and maritime trade routes across more than 60 countries in Asia, Europe and Africa.
Currently, Pakistan imports more than 50 percent petroleum products, which it plans to substitute with local production once the Gwadar refinery starts production.
During the first eight months of current fiscal year 2019, Pakistan has imported $9.6 billion worth of various petroleum products out of total imports worth $36.6 billion.


Pakistan hopes US immigrant visa processing will resume after policy review

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Pakistan hopes US immigrant visa processing will resume after policy review

  • State Department has suspended issuance of immigrant visas for nationals of 75 countries from Jan. 21
  • Pakistan says trade with Iran complies with international law as US announces additional 25 percent tariff

ISLAMABAD: Pakistan said on Thursday it was in contact with US authorities and hoped routine visa processing would resume after Washington completes an internal review of its immigration system that has led to a pause in immigrant visa issuances for several countries, including Pakistan.

The US State Department said on Wednesday it would suspend the issuance of immigrant visas for nationals of 75 countries, including Pakistan, from Jan. 21, as President Donald Trump presses ahead with a hard-line immigration agenda centered on financial self-sufficiency.

In an update published on its website, the State Department said it was conducting a comprehensive review of immigration policies to ensure that migrants from what it described as “high-risk” countries do not rely on public welfare in the United States or become a “public charge.”

Pakistan’s Foreign Office said it had taken note of the announcement and was in contact with US authorities to seek clarification on the scope and duration of the move.

“We are in touch with the US authorities to ascertain further details. This is an evolving news that we are following. We understand that this is an internal ongoing process of review of US immigration policies and system,” Foreign Office spokesperson Tahir Andrabi said.

The spokesperson added that Pakistan viewed the development as part of an internal US policy review and expressed hope that routine visa processing would resume once the review is completed.

Andrabi also addressed Washington’s decision that any country that does business with Iran will face a tariff rate of 25 percent on any trade with the US, as Washington weighs a response to the situation in Iran which is seeing its biggest anti-government protests in years.

“This is, again, an evolving story. Pakistan has the trade that takes place between Pakistan and other countries, follows international trade regulations and, of course, international law relevant to those trades,” he said.

He added that Pakistan had taken note of the US announcement and would continue engagement with Washington.

“We will work with the US authorities. Pakistan has had very positive trade in those years with the US and we look forward to culmination of those talks and a mutually beneficial agreement on trade with the US side.” 

During the course of his second term in office, Trump has often threatened and imposed tariffs on other countries over their ties with US adversaries and over trade policies that he has described as unfair to Washington.

Trump’s trade policy is under legal pressure as the US Supreme Court is considering striking down a broad swathe of Trump’s existing tariffs.

Iran exported products to 147 trading partners in 2022, according to World Bank’s most recent data.