Delegation of Saudi Arabia signed seven memorandum of understanding (MoU) and investment agreements with Pakistan, worth $20 billion, to boost bilateral ties.
The seven pacts
1 – Saudi Arabia to assist Pakistan in the production of electricity and its generation.
2 - The Saudi Fund for Development (SFD), set up to channel bilateral aid to developing countries, will finance the supply of crude oil and petroleum products to Pakistan.
3 - Future cooperation between the Pakistan Standards and Quality Control Authority (PSQCA) and Saudi Standards, Metrology and Quality Organisation. PSQCA is a state body that advises that government on promoting industrial efficiency to improve the competitiveness of Pakistani products in the international markets.
4 – The Kingdom will establish an integrated refinery petrochemical plant. Saudi Arabia will set up a $10 billion oil refinery in Gwadar, Balochistan. The capacity of the proposed oil refinery will be between 250,000-300,000 bpd (11-13 million tons per annum), according to Radio Pakistan. Further, KSA will study investment opportunities in the refining and petrochemical sectors of Pakistan.
5- Cooperation and promotion of sports between Saudi Arabia and Pakistan.
6 – An MoU was signed in the field of mineral and mine resources from Balochistan and the Khyber Pakhtunkhwa province of Pakistan.
7 – An MoU was signed in the field of developing renewable energy projects.
Saudi Arabia has also agreed to give Pakistan $3 billion in foreign currency support for a year and a loan of $3 billion in deferred payments for oil imports. With the oil agreement, Pakistan will receive oil worth $2.5 million every month. This agreement will remain in place for three months.
Pakistan now a destination for long term investment: Dawood
“This is a purely commercial investment by Saudi Arabia,” Abdul Razaq Dawood, the advisor for commerce, textile, industry, production, and investment tells Media.
“The world now considers Pakistan a destination for long term investment. Pakistan is no longer a security concern.”