Pakistan approved a tax-neutral bonded framework on an unspecified date, enabling Saudi businesses to keep commercial petroleum reserves inside the country free from local taxes. Petroleum Minister Ali Pervaiz Malik stated this initiative encourages foreign investment and gives Saudi Arabia alternative pathways to manage shipments and access Asian markets.
Storage policy offers greater route flexibility
During a meeting with Saudi Arabia ambassador Dr Rajeh bin Tami Al-Baqami, Petroleum Minister Ali Pervaiz Malik explained the new framework. He noted the policy was created by looking at global energy hubs like Singapore and Fujairah.
An official statement indicated that local commercial reserves allow Saudi firms to lower maritime transit dangers at the Bab Al Mandeb Strait and the Strait of Hormuz. Malik added that these facilities provide the kingdom more adaptability when delivering oil to regional buyers.
Both officials talked about multiple sectors for possible partnership:
- Strategic oil storage.
- Upgrades to refineries.
- Supplies of liquefied petroleum gas.
- Support for commercial engagement.
- Investment in mining, petroleum and energy.
Hub complex and refinery investment
Malik shared proposals for a massive oil refining and storage facility located at Hub in Balochistan, which receives design support from Technip Energies UK. This planned hub will accept Very Large Crude Carriers.
He explained that the initiative enhances Pakistan function as a transit route for energy moving toward China and Central Asia. In addition, he urged Saudi businesses to join the ongoing refinery upgrade project.
This initiative seeks to upgrade local refining plants, boost operational performance, and transition toward Euro 5 fuel specifications. Malik called this a chance for Saudi capital to enter the local refining sector.
Crude cargoes and winter supplies
The minister expressed gratitude to Saudi officials at Yanbu port for prioritizing crude oil shipments destined for Pakistan throughout recent international market interruptions. He also conferred with Saudi Aramco regarding potential expansions in crude cargo acquisitions and dedicated shipments of liquefied petroleum gas.
These talks focused on national energy requirements, including anticipated growth in household gas consumption through the winter season.
Visa processing and minerals forum
The Saudi ambassador revealed that the diplomatic mission in Islamabad implemented same-day handling for visa requests submitted by Pakistani nationals. This step facilitates movement and encourages commercial, personal, and cultural ties.
Furthermore, Malik welcomed Saudi Vice Minister of Mining Khalid al-Mudafier to attend the Pakistan Minerals Investment Forum happening in Islamabad on November 12 and 13. He pointed to the mining industry as an extra avenue for partnership and funding.
