Pakistan says new policy on Saudi refinery project to be finalized in ‘couple of weeks’

This handout picture, taken on January 12, 2019, released by the Saudi Embassy in Pakistan shows officials from Pakistan and Saudi Arabia discussing prospects of oil refinery and development of Gwadar in a meeting held in Gwadar. (Photo courtesy: Twitter/KSAembassyPK)
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Updated 14 April 2023
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Pakistan says new policy on Saudi refinery project to be finalized in ‘couple of weeks’

  • Crown Prince Mohammed bin Salman announced the oil refinery project in 2019
  • The $10 billion project has not materialized mainly since due to feasibility issues

ISLAMABAD: State Minister for Petroleum Dr. Musadik Malik said this week a new policy for a $10 billion Saudi oil refinery to be set in Pakistan’s deep-water port of Gwadar, was being deliberated upon by the cabinet and would be finalized in a “couple of weeks.”

The South Asian nation, which is battling a wrenching economic crisis and is in dire need of foreign funds, is seeking to reduce the value of its fuel imports and protect itself from geopolitical shocks. Energy purchases account for most of Pakistan's import bill.

Crown Prince Mohammed bin Salman announced the oil refinery project in 2019 during a visit to Islamabad but it has not materialized mainly since due to feasibility issues, including that the Saudis have suggested a location near Karachi instead of Gwadar in the violence-prone southwestern Balochistan province.

Malik told Arab News in an interview on Wednesday that Pakistan was working “closely” with the Kingdom and delegations of both countries had met multiple times to discuss modalities of the refinery project.

“We have resolved problems around the refinery project,” he said. “We went to Saudi Arabia [for this] and we also met the Saudi team in Abu Dhabi.”

“Right now, the new refinery policy is with the cabinet and in a couple of weeks it will be finalized and we will re-engage with Saudi Arabia … We are really looking forward to it.”

Malik thanked the Kingdom for its continuous support for Pakistan during difficult times.

“Pakistan is receiving a huge amount of oil on deferred payment from Saudi Arabia,” the minister added. “It is about $1.2 billion which is a significant amount … for which we are very grateful.”

“As our needs evolve, we continue to engage with our brotherly country [for more oil on deferred payment] and see how best to move forward,” he added.

Last week, Pakistan said Saudi Arabia had told the International Monetary Fund (IMF) it would provide financing to Pakistan, a critical step needed to secure IMF funding.

Saudi Arabia's $2 billion pledged in external financing support to Pakistan is one of the final conditions for an IMF deal that Islamabad needs to avert a default.

The IMF has asked Pakistan to secure assurances on external financing from friendly countries and multilateral partners to fund its balance of payment gap for this fiscal year, which ends in June.


Punjab expands Pakistan-India Wagah border arena with museum, partition-themed park

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Punjab expands Pakistan-India Wagah border arena with museum, partition-themed park

  • The border crossing, near eastern city of Lahore, is the primary land route between Pakistan and India and one of the most recognizable symbols of their often-tense relations
  • The site is best known for its daily flag-lowering ceremony, a choreographed military ritual performed by border forces from both countries that draws thousands of spectators

ISLAMABAD: Maryam Nawaz, chief minister of Pakistan’s Punjab province, on Thursday inaugurated the newly constructed arena at Wagah border cross between Pakistan and India, which includes a museum and a partition themed park.

The Wagah border crossing, located near the eastern city of Lahore, is the primary land route between Pakistan and India and one of the most recognizable symbols of the often-tense relationship between the two neighbors. It serves as a key point for prisoner exchanges and limited movement of travelers, while remaining tightly regulated due to security considerations.

The site is best known for its daily flag-lowering ceremony, a choreographed military ritual performed by border forces from both countries that draws thousands of spectators. Over the years, the ceremony has evolved into a popular tourist attraction, blending displays of nationalism with public spectacle and making it one of Pakistan’s most visited landmarks, which connects with India’s Attari.

Flanked by military officials, CM Nawaz visited the crossing and inaugurated the new arena, with its seating capacity increased from 7,500 to 25,000 spectators, the state-run Radio Pakistan broadcaster reported. The chief minister also visited the martyrs’ monument and offered her respects.

“In addition to the arena’s expansion, several new constructions have been added at the Joint Check Post Wagah. These new developments include a theme park depicting the partition of the Subcontinent, featuring models of a railway station, military equipment and a Martyrs’ Memorial,” the broadcaster reported.

“A Pakistan Museum has also been established within the arena, showcasing the country’s history and culture from the Freedom Movement to the present day.”

In August 1947, Britain divided the Indian Sub-continent, its former colony, into two countries — Hindu-majority India and Muslim-majority Pakistan.

Excitement over independence was quickly overshadowed by some of the worst bloodletting that left up to 1 million people dead as gangs of Hindus and Muslims slaughtered each other.

Creating two independent nations also tore apart millions of Hindu and Muslim families in one of the world’s largest peacetime migrations, which displaced at least 15 million people.

The fate of Kashmir, then a princely state, was left undecided. The Himalayan territory continues to remain a flashpoint in relations between the neighbors, who have fought multiple wars over it.