Pakistan and Saudi Arabia have agreed to bolster strategic cooperation in the minerals sector, crude oil and liquefied petroleum gas (LPG) procurement, refinery upgrades, and oil storage.
Federal Minister for Petroleum Ali Pervaiz Malik met with Saudi Ambassador Dr Rajeh bin Tami Al-Baqami to discuss these bilateral ties. The Saudi Embassy in Islamabad launched same-day processing for visa applications for Pakistani citizens on 30 October. Malik stated that Pakistan approved a tax-neutral bonded policy benchmarked against international energy hubs like Singapore and Fujairah.
Under this policy, Saudi companies can establish commercial oil reserves in Pakistan without being subject to local tax liabilities. Pakistan intends to build a major petroleum storage and refining complex at Hub in Balochistan, with Technip Energies UK providing guidance. The proposed facility at Hub will have the capacity to accommodate Very Large Crude Carriers.
Malik explained that the refinery upgradation programme aims to modernise domestic infrastructure, improve operational efficiency, and transition towards Euro 5 fuel standards. Saudi authorities at Yanbu port prioritised crude oil shipments to Pakistan during recent global market disruptions, according to Malik.
Malik noted that Pakistan deeply valued its historic relationship with Saudi Arabia and remained committed to expanding cooperation across strategic sectors. A cabinet committee approved amendments to the oil refining policy in July.
