Saudi Arabia eyes investment in Pakistan’s oil and minerals

Pakistan and Saudi Arabia have agreed to expand cooperation in the energy and minerals sectors, with a focus on oil storage, refinery modernisation, crude oil supplies and liquefied petroleum gas (LPG) procurement.

The understanding was reached during a meeting between Petroleum Minister Ali Pervaiz Malik and Saudi Arabia’s Ambassador to Pakistan, Dr Rajeh bin Tami Al-Baqami, on Friday. The discussions focused on investment opportunities and ways to strengthen economic and strategic ties between the two countries.

Saudi Arabia also introduced same-day visa processing for Pakistani citizens at its embassy in Islamabad to facilitate travel and promote business and people-to-people exchanges.

During the meeting, Malik highlighted Pakistan’s plans to expand its petroleum storage capacity and improve energy security. He said the government had approved a tax-neutral bonded policy, based on international energy trading hubs such as Fujairah and Singapore.

Under the framework, Saudi companies can establish commercial oil reserves in Pakistan without incurring local tax liabilities. The arrangement is intended to offer greater flexibility in oil storage and help diversify supply routes amid disruptions to regional maritime trade.

The minister said Pakistan’s proposed storage facilities could also help Saudi Arabia manage its oil shipments and improve access to Asian markets.

Malik further outlined plans to establish a large petroleum storage and refining complex at Hub in Balochistan, with technical guidance from Technip Energies UK. The proposed facility is expected to accommodate Very Large Crude Carriers (VLCCs) and strengthen Pakistan’s potential as an energy transit and trading hub for Central Asian and Chinese markets.

The two sides also discussed Saudi investment in Pakistan’s refinery upgradation programme. The initiative aims to modernise local refineries, improve efficiency and help the country move towards Euro-5 fuel standards.

Malik thanked Saudi Arabia for supporting Pakistan during recent disruptions in global energy markets. He particularly appreciated the assistance provided by authorities at Yanbu port in prioritising crude oil shipments to Pakistan.

The minister also discussed closer coordination with Saudi Aramco to increase crude oil procurement and arrange dedicated LPG shipments. These supplies are expected to help meet Pakistan’s energy requirements, particularly as gas demand rises during the winter season.

Both sides reaffirmed that their longstanding defence and strategic partnership provided a strong foundation for wider economic cooperation and regional stability. The Saudi ambassador said Riyadh deeply valued Pakistan’s continued support and emphasised that the two countries stood together in difficult circumstances.

The meeting also covered opportunities in the minerals sector. Malik invited Saudi Vice Minister of Mining Khalid al-Mudafier to attend the Pakistan Minerals Investment Forum, scheduled to take place in Islamabad on November 12 and 13.

Pakistan has been seeking to increase its strategic petroleum reserves to reduce its exposure to international supply disruptions. The government has also been working on changes to its oil refining policy to encourage investment and strengthen domestic energy infrastructure.