Islamabad 12 August 2022: Middle Eastern countries has shown interest in up-gradation of state owned refinery as a part of financial package to shore-up country FX reserves. Along with $1 billion investment in state owned entities up-gradation project would be long term. Government has currently ownership in Pakistan Refinery Limited and Pak Arab Refinery Ltd.
The government is also set to provide tax breaks worth around Rs25b to firms located in the United Arab Emirates (UAE) who invest in Pakistan. According to sources in the Federal Board of Revenue (FBR), work on tax exemptions has begun. Total tax exemptions are expected to range between Rs20 and Rs25b during a three to five-year timeframe.
According to the sources, the government may offer tax breaks on imported machinery, imported parts, and income tax. The Emirati firms are anticipated to invest in a variety of industries, including healthcare, agriculture, and energy infrastructure. Aside from that, investments in digital communication, gas, and alternative energy resources might be made.
The UAE government has declared that its public enterprises will spend $1b in Pakistan across many industries. The projected investment is intended to replenish Pakistan’s rapidly dwindling foreign reserves.
Earlier Saudi Arabia has shown interest in expansion of Pakistan Refinery, as the Kingdom’s investment minister on Thursday agreed that his government would take a decision on the refinery plan after evaluating viability of the project. The decision was taken at a meeting between the former minister of state and chairman Board of Investment (BOI), Muhammad Azfar Ahsan and Saudi Arabia’s Minister for Investment, Khalid Al-Falih in Tashkent.
Talking to a delegation of Saudi businessmen and investors here, the premier said that Pakistan has huge potential for investment in diverse fields, including agriculture and minerals. He said Saudi Arabia and Pakistan enjoy excellent brotherly relations and both the countries should transform their mutual cooperation into economic partnership.
During Prime Minister Shehbaz Sharif visit Saudi Arabia extended support to Pakistan on economic and diplomatic fronts. Shehbaz Sharif also reaffirmed Pakistan’s desire to enhance bilateral cooperation with Saudi Arabia in different sectors including trade and investment.
The meeting was briefed that Pakistan is an emerging country in terms of investment potential with many facilities for business and making safe investment. There are ample opportunities for trade and investment in tourism, minerals, textiles, leather and other sectors.
The meeting was further told that investment can be made in the oil refinery industry in Gwadar, where Saudi investors also shown keen interest. It was agreed at the meeting that Pakistan and Saudi Arabia will accelerate progress in trade and investment and in this regard the Pakistan-Saudi Arabia Joint Working Group would also be activated.
A high-level delegation of Saudi business investors lead by Mr Fahd bin Mohammed Al-Bash, Chairman of the Saudi-Pakistani Business Council and Nawaf Bin Saeed Maliki, Ambassador of Royal Embassy of Saudi Arabia to Pakistan attended the business conference held at PM Office Islamabad. The federal minister and chairman Board of investment Chaudhary Salik Hussain along with secretary Board of investment thanked this esteemed high level VVIP business delegation for visiting Pakistan.
The Minister said that this business meet-up, and following meetings in Lahore, Sialkot, Faisalabad & Karachi, will provide a dynamic platform for furthering Pak-Saudi Business to Business and Government to Business linkages besides offering us the opportunity to interact and explore new vistas of mutual cooperation including trade & investment opportunities.
The minister highlighted that the Saudi Pakistan Business Council, is playing a crucial and constructive role in providing conducive platform to promote business to business (B2B) interactions between the Pakistani and Saudi business communities. This visit will surely pave way to form formidable economic alliances and facilitate Pakistan-Saudi business growth. The Minister and Secretary BOI acknowledged that Crown Prince Mohammad Bin Salam projected his Vision-2030 aimed at diversification of Saudi economy away from the traditional oil-based approach. In this context, Pakistan is keen to join hands with the Kingdom and reduce its excessive reliance on imported oil plan for a sustainable economic future.
