Pakistan is on the verge of finalizing a long-awaited $10 billion agreement with Saudi Arabia’s oil giant, Aramco, for the construction of a refinery in Hub, according to sources.
In addition to this development, the Special Investment Facilitation Council (SIFC), a collaboration between military and civilian authorities, is actively exploring options to secure approximately $7 billion from Saudi Arabia, which could involve granting the kingdom stakes in the Reko Diq project.
Sources have confirmed that the necessary policy incentives have been approved under the Greenfield Refinery Policy 2023, aimed at attracting investment from Saudi Arabia.
“It is also expected that Saudi Arabia might acquire stakes in the $7 billion Reko Diq project through a feasible transaction model with the assistance of the Saudi Wealth Fund,” stated a top official.
Furthermore, there are plans to lease 85,000 acres of agricultural corporate farm land to potential foreign investors, as sources revealed.
The SIFC is working on developing a transaction pipeline to expedite investment in critical infrastructure.
In recent weeks, the government has informed the SIFC that it will fast-track government-to-government (G2G) arrangements for sectors such as energy, minerals, agriculture, and IT.
The Framework for Inter-Governmental Commercial Transactions is already in place.
The SIFC is also considering G2G arrangements for the privatization of state-owned enterprises (SOEs) wherever feasible.
Already, the first transaction has been executed between the Karachi Port Trust (KPT) and AD Ports, UAE, for the container terminal in Karachi. The second transaction, involving the outsourcing of operations of Bulk and General Cargo Terminal, is expected to be finalized expeditiously. The SIFC is also exploring options for technology-driven investments to boost productivity in the country.
