ISLAMABAD: Prime Minister Shehbaz Sharif has given his approval to set up a new refinery costing $10-14 billion in Pakistan, state minister for petroleum Dr. Musadik Malik announced on Friday, saying that the move would create jobs and help meet the country's energy needs. 

Reeling from a troubling economic crisis, Pakistan is trying to reduce the value of its fuel imports and protect itself from geopolitical shocks due to rising global energy prices. Energy purchases account for most of Pakistan's import bill, forcing the South Asian nation to turn to Russia, which has agreed to supply it oil at a cheaper rate.   

Rising fuel and energy costs have hurt the South Asian country with its foreign exchange reserves declining, its national currency plummeting to historic lows against the U.S. dollar and Islamabad facing unprecedented inflation. 

"A refinery worth $10-14 billion will be established here [in Pakistan]," Malik told reporters at a news conference. "The Pakistani government was actively trying to achieve this since a long time but today, the prime minister has finalized and approved this policy," he added. 

He said the refinery would not remain a "pipe dream," adding that the government had also bought oil at cheaper rates from Russia which would not only meet Pakistan's energy needs but also help bring inflation down in the country. 

"This investment of $10-14 billion would ensure an entire city of energy thrives, provide people employment opportunities," Malik added.  

Malik said the government was actively working on a new energy policy that would focus on creating energy resources from Liquefied petroleum gas (LPG), LMG, and solar. The policy would also promote energy conservation to ensure sustainable development, he added. 

The minister said that the cabinet had also approved a new "comprehensive energy conservation" plan, the details of which would be shared in the coming days.