Pakistan set to conclude $10bln deal with Saudi Arabia

Islamabad: Pakistan is on the brink of finalizing a significant $10 billion deal with Saudi Arabia, with plans that include partnering with major Saudi firm Aramco to construct a refinery in Hub by 2023.

The deal is seen as a major boost to Pakistan's economy and an expansion of its collaboration with Saudi Arabia.

The Special Investment Facilitation Council (SIFC), jointly managed by civilian and military authorities, is also exploring a $7 billion Saudi investment in Rekodic's shares, along with leasing 85,000 acres of land for agricultural purposes.

Sources have confirmed that policy incentives, as outlined in the Greenfield Refinery Policy 2023, have been approved to encourage Saudi investment in the country.

Additionally, it is expected that Saudi Arabia will invest $7 billion in purchasing shares in the Rekodic project, potentially through the Saudi Wealth Fund using a viable transaction model.

Another potential aspect of this collaboration involves leasing 85,000 acres to foreign investors for the development of corporate farms, further boosting Pakistan's agricultural sector.

The Special Investment Facilitation Council is actively developing a transaction pipeline to expedite investment for the necessary infrastructure.

Recent discussions within the council have revolved around the government's efforts to facilitate faster government-to-government arrangements in key sectors such as energy, minerals, agriculture, and IT.

This includes establishing a framework for intergovernmental commercial transactions.

Moreover, the council is exploring options for the privatization of state-owned enterprises through government-to-government agreements.

The first such transaction has already taken place between the Karachi Port Trust and AD Ports of the UAE, with the UAE now managing the Karachi Container Terminal.

Further negotiations between the Karachi Port Trust and AD Ports for outsourcing operations of large and general cargo terminals are expected to conclude soon.

SIFC is also considering technology-related investments to enhance productivity and promote economic growth within the country.