KSA offered to set up oil reserves

Business Recorder · 31/10/2026، 12:33:01 AM

ISLAMABAD: Federal Minister for Petroleum Ali Pervaiz Malik said Saudi companies could establish commercial oil reserves in Pakistan without incurring local tax liabilities, offering an opportunity to diversify maritime transit risks associated with the Strait of Hormuz and Bab el-Mandeb. He said the move would facilitate Riyadh’s access to Asian markets. Ali Pervaiz Malik held a meeting with the new Ambassador of Kingdom Saudi Arabia (KSA) to Pakistan, Dr. Rajeh bin Tami Al-Baqami, to discuss opportunities for strengthening bilateral cooperation in the mining, petroleum and energy sectors, including strategic oil storage, refinery upgradation, LPG supplies and facilitation of commercial engagement. The Minister informed the Ambassador that Pakistan has approved a tax-neutral bonded policy, benchmarked against international energy hubs such as Fujairah and Singapore. He highlighted that strategic oil storage facilities in Pakistan would provide Saudi Arabia with greater flexibility in managing supply routes and accessing regional markets. READ ALSO: Pakistan seeks stronger energy ties with Saudi Arabia, refinery upgrade in focus The Minister welcomed the longstanding strategic partnership between Pakistan and Saudi Arabia and conveyed that, during his recent visit to Riyadh, he had conveyed to His Royal Highness Prince Abdulaziz bin Salman Al Saud the leadership’s special sentiments of solidarity and affection for the Saudi people. He said Pakistan deeply values its historic relationship with Saudi Arabia and remains committed to expanding cooperation across strategic sectors. He further highlighted Pakistan’s plans to develop a major petroleum storage and refining complex at Hub, Balochistan, under the guidance of Technip Energies UK. The proposed facility, supported by the Prime Minister and the Chief of Defence Forces, will have the capacity to accommodate Very Large Crude Carriers and strengthen Pakistan’s potential as a regional energy corridor serving Central