ISLAMABAD: Petroleum Minister Ali Pervaiz Malik met Saudi Ambassador Nawaf bin Saeed Al-Malki to discuss upgrading Pakistan’s oil refineries and expanding long-term energy cooperation with the Kingdom, the petroleum ministry said in a statement.
Tensions in the Middle East, triggered by joint US-Israel strikes against Iran in February, have driven up fuel costs worldwide and put Pakistan’s foreign exchange reserves under pressure. Subsequent tensions in the Strait of Hormuz waterway have also disrupted energy shipping routes, making it costlier for countries such as Pakistan to import fuel to meet their energy needs.
Saudi Arabia has supported Pakistan’s energy sector over the years by granting it deferred oil payment facilities. Pakistan said last month the Kingdom also committed $3 billion in additional financial support for Islamabad and agreed to extend an existing $5 billion deposit to help shore up its forex reserves.
Malik met Malki in Islamabad during which the two agreed to strengthen bilateral cooperation in the energy sector, the petroleum ministry said, with the Saudi envoy reaffirming the Kingdom’s commitment to supporting Pakistan’s energy security.
“Both sides reviewed ongoing collaboration in the petroleum sector and exchanged views on enhancing long-term energy cooperation,” the ministry said.
“Both sides are also working closely to explore various refinery upgradation/investment projects.”
Malik thanked Saudi Arabia for its continued support in meeting Pakistan’s energy needs, the statement said, adding that he acknowledged the “special treatment” Pakistan received in petroleum supplies from Saudi Arabia which helped it navigate the current energy challenges.
The ministry said technical-level consultations between Pakistan and Saudi Arabia were making a “positive headway” toward long-term energy cooperation.
“The minister reiterated Pakistan’s desire to further deepen its strategic energy partnership with Saudi Arabia, especially Aramco, and appreciated the Kingdom’s longstanding support and cooperation,” the petroleum ministry said.
The Saudi envoy praised Pakistan’s constructive role in promoting regional peace and stability as the US and Iran conflict drags on.
Pakistan and Saudi Arabia have sought enhancing their cooperation in the energy sector, with the two sides having discussed a multibillion-dollar refinery project at Gwadar involving Saudi Arabia’s Aramco over the years.
