Pakistan may sign $12bn deals with Saudi govt

ISLAMABAD: Pakistan may sign billions of dollars of investment deals with the kingdom during an upcoming visit of Crown Prince Mohammad Bin Salman, including a multibillion dollar oil refinery in Gwadar.

Talking to selected journalists on Monday, Prime Minister’s Advisor on commerce and Investment Razak Dawood said “Pakistan and Saudi Arabia will sign three memoranda of understanding for investment in oil, renewable energy and mineral sectors during the royal visit.” “It is very likely that an agreement for $3 billion oil facility on deferred payments will also be signed during the visit,” he added.

Pakistan will also ask Saudi Arabia to take part in the privatisation of over $2 billion worth of LNG-fired two power plants, although the kingdom had earlier showed interest in buying those units only under a government-to-government deal.

Dawood did not put an exact investment figure by Saudi Arabia, as the precise size of the investment will be determined once a feasibility study of the oil refinery is ready.

The adviser estimated minimum $10 billion to $12 billion Saudi investment in Pakistan in the medium term.

“It will take about 15 months to 18 months to complete the feasibility study,” said Dawood.

He said the cost of the oil refinery will be in the range of $5 billion to $6 billion but if the Saudis decide to build a petrochemical complex the cost would increase close to $10 billion.

A strong Saudi delegation comprising 600 to 700 delegates — including 40 private investors — would visit Pakistan, at the weekend, said Board of Investment Chairman Haroon Sharif.

Prince Mohammed is expected to arrive in Pakistan this week, although an exact date of his arrival has not yet been officially disclosed. It is expected the crown prince would arrive on Saturday or Sunday.

His security team, comprising 170 personnel, has already arrived in Pakistan and is visiting various places in Islamabad.

Two five-star hotels and couple of three-star hotels have been booked for the delegates. In addition, media reports suggested that the PM’s House that had earlier been converted into a university will be used to host the royal guests.

 

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