ISLAMABAD, October 30, 2026: Pakistan and Saudi Arabia have reaffirmed their commitment to expanding cooperation in petroleum, mining and energy, with discussions focusing on strategic oil storage, refinery modernization, LPG supplies and new investment opportunities.
Federal Minister for Petroleum Ali Pervaiz Malik discussed these initiatives during a meeting with Saudi Arabia’s newly appointed Ambassador to Pakistan, Dr. Rajeh bin Tami Al-Baqami, in Islamabad on Friday.
The minister welcomed the longstanding strategic partnership between the two countries and recalled his recent visit to Riyadh, where he conveyed Pakistan’s leadership’s sentiments of solidarity and affection for the Saudi people to Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud.
He said Pakistan remained committed to strengthening its historic relationship with Saudi Arabia through greater economic engagement and cooperation in strategic sectors.
Pakistan offers Saudi firms tax-neutral oil storage facilities
Malik informed the ambassador that Pakistan had approved a tax-neutral bonded policy, modeled on international energy hubs such as Fujairah and Singapore.
Under the policy, Saudi companies can establish commercial oil reserves in Pakistan without incurring local tax liabilities.
The minister said the arrangement would provide Saudi investors with opportunities to diversify maritime transportation risks associated with the Strait of Hormuz and Bab Al Mandeb Strait while improving access to Asian markets.
He added that strategic petroleum storage facilities in Pakistan could offer Saudi Arabia greater flexibility in managing supply routes and accessing regional markets.
The minister also highlighted plans to develop a major petroleum storage and refining complex at Hub, Balochistan, under the technical guidance of Technip Energies UK.
The proposed facility, backed by the Prime Minister and Chief of Defence Forces, would accommodate Very Large Crude Carriers and strengthen Pakistan’s potential as a regional energy corridor connecting Central Asian and Chinese markets.
Saudi investment sought for refinery upgrades
Malik outlined investment opportunities under Pakistan’s ongoing refinery upgradation programme, which aims to modernize domestic refining infrastructure, improve operational efficiency and introduce Euro 5 fuel standards.
He said the programme offered significant opportunities for Saudi investment and participation in Pakistan’s petroleum refining sector.
The minister also thanked Saudi authorities at Yanbu port for prioritizing crude oil shipments to Pakistan during recent disruptions in international energy markets.
Discussions included coordination with Saudi Aramco to explore additional crude oil procurement and dedicated LPG shipments to meet Pakistan’s energy requirements, particularly ahead of increased domestic gas demand during winter.
Saudi embassy introduces same-day visa processing
During the meeting, Ambassador Dr. Rajeh bin Tami Al-Baqami announced that the Saudi Embassy in Islamabad had introduced same-day processing of visa applications for Pakistani citizens.
The initiative aims to facilitate travel and strengthen business, cultural and people-to-people exchanges between the two countries.
The ambassador reaffirmed Saudi Arabia’s appreciation for Pakistan’s longstanding support, saying both countries stood together in all circumstances.
He emphasized that their defence and energy cooperation frameworks were intended to promote regional peace, stability and economic growth.
Both sides acknowledged that their strong strategic and defence partnership provided a foundation for broader economic cooperation.
Saudi Arabia invited to Pakistan Minerals Investment Forum
The petroleum minister also invited Saudi Vice Minister of Mining Khalid Al-Mudafier to participate in the Pakistan Minerals Investment Forum, scheduled for November 12 and 13 in Islamabad.
He said the forum would provide further opportunities for Saudi investment and cooperation in Pakistan’s minerals sector.
Both sides agreed to strengthen their longstanding relationship through increased investment, commercial partnerships and cooperation across the petroleum, energy and mining sectors.