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Pakistan anticipates $10bn refinery agreement with Saudi Arabia in 2023

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1 year ago

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  • SIFC exploring options to secure around $7bn from Saudi Arabia.
  • KSA also likely to procure stakes in $7 billion Reko Diq project.
  • Agriculture corporate farm lease of 85,000 acres on cards too.

ISLAMABAD: Pakistan is anticipating the long-awaited $10 billion agreement with Saudi Arabia’s oil titan, Aramco, for the construction of a refinery in Hub to reach its finalisation this year, The News has learnt.

Additionally, the Special Investment Facilitation Council (SIFC), a collaboration between the military and civilian authorities, is exploring options to secure approximately $7 billion from Saudi Arabia, granting the kingdom stakes in the Reko Diq project.

Sources have confirmed that the necessary policy incentives have been greenlit under the Greenfield Refinery Policy 2023, aiming to attract investment from Saudi Arabia.

“It is also expected that Saudi Arabia might procure stakes in the $7 billion Reko Diq project through a feasible transaction model with the help of Saudi Wealth Fund,” said a top official.

The agriculture corporate farm lease of 85,000 acres of land to potential foreign investors is also on cards, sources told The News on Tuesday.

The SIFC will be developing a transaction pipeline to expedite investment in critical infrastructure.

Through government-to-government (G2G) transactions, the SIFC was told in recent weeks that the government would fast-track the G2G arrangements for energy, minerals, agriculture and IT.

The Framework for Inter-Governmental Commercial Transactions is in place.

The SIFC deliberated upon options for G2G arrangements for the privatisation of SOEs, wherever feasible.

The first transaction was already executed between the Karachi Port Trust (KPT) and AD Ports, UAE, for the container terminal in Karachi. The second transaction between the KPT and AD Ports for the outsourcing of operations of Bulk and General Cargo Terminal is to be finalised expeditiously. The SIFC will also explore options for technology-driven investments to boost productivity in the country.

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Business

Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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Business

SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Business

Discos report losses of Rs239 billion.

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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