Pakistan, Saudi Arabia explore expanded energy cooperation
Federal Minister for Petroleum Ali Pervaiz Malik met Saudi Arabia’s new Ambassador to Pakistan, Dr Rajeh bin Tami Al-Baqami, on Friday and discussed strengthening bilateral cooperation in mining, petroleum and energy sectors, including strategic oil storage, refinery upgradation and LPG supplies.
During the meeting, the minister reaffirmed Pakistan’s commitment to expanding cooperation with Saudi Arabia, describing the relationship as a longstanding strategic partnership.
He said that during his recent visit to Riyadh, he had conveyed to Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud the Pakistani leadership’s special sentiments of solidarity and affection for the Saudi people.
Malik informed the ambassador that Pakistan had approved a tax-neutral bonded policy, benchmarked against international energy hubs such as Fujairah and Singapore.
Under the framework, Saudi companies can establish commercial oil reserves in Pakistan without local tax liabilities, providing an opportunity to diversify maritime transit risks associated with the Strait of Hormuz and Bab el-Mandeb while facilitating access to Asian markets.
He said strategic oil storage facilities in Pakistan would give Saudi Arabia greater flexibility in managing supply routes and accessing regional markets.
The minister also highlighted plans to develop a major petroleum storage and refining complex at Hub, Balochistan, under the guidance of Technip Energies UK.
The proposed facility, supported by the prime minister and the chief of defence forces, will have the capacity to accommodate Very Large Crude Carriers and strengthen Pakistan’s potential as a regional energy corridor serving Central Asian and Chinese markets.
Malik said Pakistan’s ongoing refinery upgradation programme also offered significant investment opportunities for Saudi Arabia. The programme aims to modernise domestic refining infrastructure, improve operational efficiency and transition towards Euro 5 fuel standards.
The minister appreciated Saudi Arabia’s support during recent global market disruptions and thanked Saudi authorities at Yanbu port for prioritising crude oil shipments to Pakistan.
He also discussed coordination with Saudi Aramco to explore increased procurement of crude oil cargoes and dedicated LPG shipments to meet Pakistan’s energy requirements, particularly in view of the anticipated rise in domestic gas demand during winter.
Both sides underscored that the strong defence and strategic partnership between Pakistan and Saudi Arabia provided a foundation for broader regional peace, stability and economic cooperation.
Ambassador Al-Baqami reiterated Saudi Arabia’s appreciation for Pakistan’s longstanding support, saying the two countries stood together in all circumstances.
He said their defence and energy cooperation frameworks were aimed at promoting peace, stability and economic growth across the region.
The ambassador also announced that the Saudi Embassy in Islamabad had introduced same-day processing of visa applications for Pakistani citizens to facilitate travel and strengthen business, cultural and people-to-people exchanges.
Malik also invited Saudi Arabia’s Vice Minister of Mining, Khalid al-Mudafier, to participate in the Pakistan Minerals Investment Forum scheduled to be held in Islamabad on November 12 and 13, highlighting opportunities for cooperation and investment in Pakistan’s minerals sector.
Both sides expressed their commitment to further strengthening bilateral relations through enhanced cooperation, investment and mutually beneficial partnerships in the energy and petroleum sectors.