ISLAMABAD: Pakistan and Saudi Arabia expressed optimism to finalize a joint oil refinery project within two months on Friday, said an official statement released in Islamabad, marking a significant step toward further strengthening bilateral ties and boosting the energy sector of the South Asian state.

The issue came up for discussion during a meeting between Dr. Musadik Malik, the state minister for petroleum in Pakistan, and Nawaf bin Said Al-Malki, the Saudi ambassador, which also focused on other matters of bilateral interest.

The two sides signed a memorandum of understanding to set up the refinery project during the visit of Saudi Crown Prince Mohammed bin Salman to Islamabad in February 2019. Pakistani authorities maintained the facility would cost over $10 billion and reduce the country’s reliance on expensive oil imports.

“A roadmap for the future of the Greenfield Oil Refinery was determined during the meeting,” said the official statement after the interaction of the two officials. “Both sides expressed the desire to finalize the agreement within the next one to two months.”

The refinery project holds significant potential for Pakistan, offering numerous benefits to the country. Apart from meeting the growing demand for petroleum products, the establishment of the refinery will create job opportunities and contribute to the overall economic development.

Pakistan received its first shipment of Russian crude oil at a discounted price earlier this week, as officials hoped for a significant reduction in import bill and greater fiscal space for the government.

With more such shipments on their way, the refinery project acquires enhanced significance for the country’s energy security.

According to the Pakistan Bureau of Statistics, energy products constitute around 29 percent of Islamabad’s total imports.