Islamabad: Al-Motahaden Petroleum Refineries of the United Arab Emirates will invest $500 million in setting up an oil refinery in Pakistan in an attempt to reduce imports and meet the country’s growing energy needs.
The refinery will be set up preferably in Khyber-Pakhtunkhwa (K-P), enhance the country’s refining capacity and help boost economic development.
In this regard, a memorandum of understanding was signed by Al-Motahaden Petroleum Refineries and the Board of Investment (BoI) on Thursday. BoI Secretary Iftikhar Babar and an official of the UAE refinery inked the agreement.
Petroleum and Natural Resources Minister Shahid Khaqan Abbasi, BoI Chairman Miftah Ismail and the UAE ambassador were present at the ceremony.
The refinery would have the capacity to process about 15,000 to 20,000 barrels of oil per day. Al-Motahaden Petroleum Refineries will form a consortium consisting of local and foreign companies to develop the project and make the required foreign direct investment in Pakistan.
The initiative will support Pakistan’s efforts to fulfill its energy requirements and enhance economic development. It will encourage investors to develop such other projects through foreign direct investment and international expertise.
Speaking on the occasion, BoI Chairman Miftah Ismail assured the UAE investors of full assistance and support for getting the required administrative and regulatory approvals.
He said the BoI would assist the company in obtaining consents and permissions for development of the project, including acquisition of land and import of plant and machinery. He expressed the hope that the project would be completed on time.
