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Saudi-based Wafi Energy signs deal to take over Shell Pakistan

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  • Sale is expected to be completed by fourth quarter of 2024.
  • Shell brand will remain in Pakistan via brand licensing agreements.
  • WAFI Energy is a fast-growing retail gas station network.

Shell Petroleum Company Limited, a subsidiary of Shell plc (Shell), has agreed to sell its 77.42% majority interest in Shell Pakistan Limited (SPL) to Saudi Arabia-based Wafi Energy LLC, said an official statement issued by the company on Wednesday.

“The sale is part of Shell’s strategy to high-grade its mobility network and was first announced on Capital Markets Day in June 2023,” the statement added.

The sale is expected to be completed by the fourth quarter of 2024, subject to regulatory approvals.

Upon completion, the Shell brand will remain in Pakistan through brand licensing agreements and customers will continue to have access to Shell’s premium fuel and lubricant portfolio, it said.

“SPL remains committed to delivering safe, reliable operations.”

WAFI Energy LLC, one of the leading fuel station companies in Saudi Arabia, is a fast-growing retail gas station network and the sole licensee of Shell Retail Network in Saudi Arabia.

The company was incorporated in 2012 with an authorised and paid-up capital of 3 million Saudi Riyal.

The development came after Shell Pakistan’s parent company, Shell Petroleum Company Limited (SPCo), notified its intent to sell its shareholding in the Pakistani entity in June this year.

SPCo had a 77.42% stake in Shell Pakistan as of December 31, 2022, according to the annual report for that year.

Shell Pakistan said at the time that the divestment plan would have no impact on its current business operations, which would continue as usual. The company also said that it was seeing strong interest from international buyers.

Shell Pakistan is one of the leading oil marketing companies in Pakistan, with a network of over 800 retail outlets across the country. The company reported a profit after tax of Rs6,450 million for the nine months ended September 30, 2023, compared to Rs2,864 million in the same period last year.

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Islamic Sukuk Bonds: Government Is Expected To Begin Bond Auction Next Week

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There is now more positive economic news for the people of Pakistan. The government is anticipated to begin the Sukuk Islamic Bond auction next week, after the central bank’s announcement of a large drop in the policy rate.

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SIFC Encourages Green Tourism: Reforming Visas to Increase Investment

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Enhancing investment in the tourism sector, Green Tourism Pakistan’s initiative has received backing from the Special Investment Facilitation Council.

Visa-On-Arrival for 126 countries, Visa-Free Entry for Gulf Cooperation Council nations, and 24-hour expedited visa processing are some of the main features of the Green Tourism Visa Policy.

It is anticipated that these endeavors will draw in about 80 million dollars in foreign direct investment and 8.3 billion rupees in domestic investment.

Green Tourism Private Limited has introduced hunting resorts in Naltar, Hunza, and Skardu, along with four- and five-star city hotels, to improve the tourism experience.

In the first phase of the project, 17 of the 78 areas have seen the start of development activity.

Approved is a central authority for Green Tourism that will supervise the growth of Air Operations.

To promote Religious Tourism, extra precautions have been taken to guarantee the security of visitors from all religions, including Sikhs and Buddhists.

Furthermore, in order to improve the quality of the tourist experience, the green guide quality program has been introduced to supply top-notch tour guides.

There is now a deluxe bus excursion from Islamabad to Peshawar that promotes local culture.

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July 2024 export data from Pakistan shows a significant rise.

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The Strategic Investment Facilitation Council (SIFC) has been instrumental in improving Pakistani products’ access to international markets, as seen by the significant surge in exports from the country at the start of the 2024–25 fiscal year.

With a 7.26% rise over the same month the previous year, July 2024 exports to the US were $476.017 million. After increasing by 7.74% annually, the United Arab Emirates emerged as the second-largest export destination.

The third and fourth places were occupied by exports to the UK ($183.303 million) and China ($60.100 million). A substantial increase in exports to Afghanistan was recorded in July of this year, rising from $46.262 million to $88.065 million, largely due to successful anti-smuggling efforts.

With a combined export volume of $553.951 million, more important export destinations included Germany, the Netherlands, Italy, Spain, Saudi Arabia, and Turkey.

A bright future for the national economy is suggested by the growing confidence major international markets have in Pakistani exports. Through the efforts of SIFC and the government, this greater access to global markets has been made possible.

Pakistan’s economy is predicted to remain stable as a result of the export growth that SIFC has enabled.

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