Saudi funding lifeline for cash-strapped Pakistan
Riyadh and Islamabad in talks for months to hammer out record investment package
October attended a prestigious investment conference. He also visited Qatar and Turkey, as well as China, seeking investments.
“One of the goals for Saudi Arabia expanding investments in refining worldwide is to secure market share and sustainable exports in the face of international competition,” Al-Bouenain said.
Saudi Energy Minister Khalid Al-Falih visited Gwadar in January and inspected the site for the proposed oil refinery at the deep sea port, just 70 km away from its Iranian competitor, Chabahar.
He was quoted by local media as saying the Kingdom was studying plans to construct a $10 billion refinery and petrochemicals complex in Gwadar.
Like most oil suppliers, the world’s top crude exporter has been investing heavily in refinery and petrochemicals projects across the globe to secure long-term buyers of its oil.
A pipeline from Gwadar to China would cut the supply time from the current 40 days to just seven, experts say.
Developed as part of China’s Belt and Road Initiative with investments worth about $60 billion, Gwadar is being billed as a regional industrial hub of the future, easily accessible for Central Asia, Afghanistan, the Middle East and Africa.
“Pakistan needs a rich partner to enter as a third party besides China, capable of injecting needed cash,” Al-Bouenain said.