ISLAMABAD: The United Arab Emirates (UAE) plans to invest $5 billion in an oil refinery project in Pakistan by the end of 2019, said UAE’s top diplomat while talking to Arab News on Thursday.
“We are going to launch very soon one of the biggest investments in a refinery project in Hub (a town in Balochistan). It is going to be a $5 billion investment between Mubadala Petroleum Company of Abu Dhabi, Pak Arab Refinery Limited (PARCO) and OMV [OMV Pakistan Exploration Gesellschaft],” UAE Ambassador Hamad Obaid Ibrahim Salem Al-Zaabi said.
PARCO Coastal Refinery is among UAE’s major investments in the country. It was incorporated in Pakistan in May 1974, as a public limited company. Today, PARCO is considered the fulcrum in Pakistan’s strategic oil supply and logistics.
Mubadala Petroleum is an international oil and gas company based in the UAE.
The plan is to set up a deep-conversion, state-of-the-art refinery that would have an output of 250,000-300,000 barrels per day.
Al-Zaabi said the project was the result of extensive discussions between Mubadala Petroleum and Pakistan’s petroleum ministry along with PARCO and OMV.
“This project will show the strength of UAE-Pakistan relations and how the UAE is focusing on investment in and future of Pakistan.”
Pakistan has sought local and foreign investment in oil and gas sector. It is also offering good rates to oil and gas exploration and production companies.
“The two governments are finalizing the minute details of this refinery project. Many meetings have taken place regarding this project,” Al-Zaabi said, adding that a UAE delegation, headed by Musabbeh Al Kaabi, the chief executive officer of Mubadala Petroleum, visited Pakistan a few months ago and met with the board of investment chairman and Pakistan’s petroleum minister.
“They have discussed this project in detail. We are going to launch it very soon,” he added.
UAE to invest $5 billion in Pakistan's oil refinery, says envoy
UAE to invest $5 billion in Pakistan's oil refinery, says envoy
- PARCO Coastal Refinery is among UAE’s major investments in the country
- The oil refinery project in Hub, Balochistan, will have an output of 250,000-300,000 barrels per day
Pakistan says economy stabilizing as it looks to 2026 growth
- Inflation averages 5 percent, remittances hit $16.1 billion as government cites signs of recovery
- IT exports, industry and development spending highlighted as focus shifts to next year’s targets
ISLAMABAD: Pakistan’s economy has shown signs of stabilization in the first half of the current fiscal year, Planning Minister Ahsan Iqbal said on Thursday, as the government looks ahead to sustaining growth momentum into 2026 after several years of economic volatility.
Briefing the media on economic performance through November, Iqbal said key indicators including inflation, industrial output, exports, remittances and fiscal revenues had improved, creating what he described as a more stable base for forward planning.
Pakistan has spent much of the past two years navigating high inflation, external financing pressures and fiscal tightening under an IMF-backed reform program. While growth remains modest, officials say recent data suggests the economy has moved out of crisis mode and into a consolidation phase.
“During July to November of fiscal year 2025–26, stability has returned to Pakistan’s economy,” Iqbal said, adding that average inflation during the period stood at around 5 percent, compared with 7.9% last year, easing pressure on households and businesses.
Large-scale manufacturing posted growth of 4.1 percent, which Iqbal described as “clear evidence of recovery in industrial activity.”
The planning minister said government revenues also improved, with Federal Board of Revenue collections reaching Rs4,733 billion ($16.9 billion) during July–November, reflecting a 10.2% increase.
External inflows remained resilient, with workers’ remittances rising 9.3% to $16.1 billion, while IT services exports increased 19% to $1.8 billion over the same period, he said.
On the public investment side, Iqbal said Rs196 billion ($700 million) were released under the development budget during the quarter, of which Rs92 billion ($329 million) had already been spent. He added that cost rationalization in development projects between July and October saved Rs3.3 billion ($11.8 million) billion in public funds.
In November, the planning minister said, the Central Development Working Party approved 10 development projects, while six major schemes were referred to the Executive Committee of the National Economic Council.
Iqbal said the approved projects were expected to create 994 immediate jobs, with nearly 24,859 direct and 40,873 indirect employment opportunities projected overall.
Looking ahead, he said all future development schemes would be required to comply with green building codes to ensure environmental protection and sustainable growth.
He also highlighted skills and innovation initiatives, saying that under the “Uraan Pakistan” program, partnerships with Oxford and Cambridge universities were being pursued to promote research, technology and innovation.
Under an IT industry revival plan, he said more than 20,000 young people were being trained in advanced technologies, with over 14,000 new jobs expected to be created.
The government has said maintaining macroeconomic stability while gradually lifting growth remains its central challenge as Pakistan moves into 2026, with officials emphasising disciplined spending, export growth and job creation as key priorities.
