Pakistan has renewed efforts to convince Saudi Arabia to proceed with a long-delayed $10 billion oil refinery project at the coastal hub of Gwadar Port, as Islamabad looks to expand energy infrastructure and attract fresh foreign investment.
Officials in Islamabad say activity at the deep-sea port has picked up significantly in recent months, with reports of increased vessel traffic and growing interest in the site as a regional transit and transshipment hub. Authorities are now positioning Gwadar as a key gateway for energy and maritime trade in the region.
The renewed engagement was raised during recent virtual discussions between Pakistan’s maritime officials and representatives of the Pakistan-Saudi Joint Business Council. The refinery proposal was among several large-scale energy projects presented for Saudi consideration.
Alongside the refinery plan, Pakistan is also seeking Saudi participation in liquefied natural gas (LNG) and liquefied petroleum gas (LPG) terminal projects at Karachi Port, as well as industrial development on newly cleared port land. Saudi investors have reportedly shown interest in petrochemical and energy storage facilities in the country.
The refinery project was first announced as part of a broader investment package discussed during high-level visits in previous years, but progress stalled due to delays in implementation and financing.
Pakistani officials now argue that improved diplomatic and security cooperation between the two countries has created a more favourable environment for revival.
Islamabad is also offering additional incentives, including the development of an “Energy City” at Gwadar, where oil-producing countries could establish strategic storage facilities. The proposal is part of a wider effort to address Pakistan’s lack of national petroleum reserves, with authorities proposing tax benefits for investors in storage infrastructure.
In parallel, Pakistan has invited Saudi Arabia to consider acquiring a 15% stake in the large-scale Reko Diq mining project in Balochistan, one of the country’s most valuable untapped mineral developments.
However, investors have previously raised concerns about policy consistency and bureaucratic delays, issues Pakistani officials say are being addressed through reforms and a dedicated investment facilitation council overseeing major projects.
While no final agreement has been reached, both sides are expected to continue discussions aimed at unlocking large-scale Saudi investment in Pakistan’s energy and mining sectors.
