Pakistan, Saudi Arabia agree to boost cooperation in oil, refineries and minerals

ISLAMABAD: Pakistan and Saudi Arabia agreed on Friday to strengthen strategic cooperation in oil storage, refinery upgrades, crude oil and liquefied petroleum gas (LPG) procurement, and the minerals sector to promote bilateral economic ties, according to a statement issued by the Petroleum Division. Saudi Arabia also announced the immediate introduction of same-day visa processing for Pakistani citizens at its embassy in Islamabad. Pakistan has been planning to boost domestic storage for crude oil and refined products to increase its energy security. With no strategic petroleum reserves, the country has been left exposed to oil supply shocks resulting from the US-Iran war that has choked supplies through the Strait of Hormuz .

The developments were announced after Petroleum Minister Ali Pervaiz Malik met Saudi Arabia’s new ambassador to Pakistan, Dr Rajeh bin Tami Al-Baqami, to discuss opportunities for enhancing cooperation in the mining, petroleum and energy sectors, including strategic oil storage, refinery upgrades, LPG supplies and commercial engagement. The minister appreciated the longstanding strategic partnership between the two countries and said Pakistan had approved a tax-neutral bonded policy modelled on international energy hubs such as Fujairah and Singapore , according to the statement. “Under this framework, Saudi companies can establish commercial oil reserves in Pakistan without local tax liabilities, offering an opportunity to diversify maritime transit risks associated with the Strait of Hormuz and Bab al-Mandab while facilitating access to Asian markets,” the statement said. “The petroleum minister highlighted that strategic oil storage facilities in Pakistan would provide Saudi Arabia with greater flexibility in managing supply routes and…