Pakistan's federal cabinet on Thursday gave its approval to Saudi Arabia for establishing an oil refinery in the port city of Gwadar.
"The cabinet has approved the draft of memorandum of understanding (MoU) Pakistan and Saudi Arabia expected to sign soon for the establishment of refinery," The Express Tribune quoted Petroleum Minister Ghulam Sarwar Khan as saying while addressing a presser.
"China has no reservations over Saudi investment in Pakistan," Khan added.
This marks the first major investment made in Pakistan by Saudi during the tenure of the Pakistan Tehreek-e-Insaf government.
The Petroleum Minister said that a Saudi delegation, headed by the Advisor on Energy Ahmad Hamed Al-Ghamdi, had recently agreed to sign a government to government contract for the refinery in Gwadar following an inspection of the proposed site.
The city was found to be viable in every aspect by the delegation, who relayed their eagerness to immediately invest in the country's refinery sector, Khan added.
"The Saudi energy minister is expected to arrive in Pakistan by the end of this month or the beginning of November to formally sign the contract," the Petroleum Minister said, adding that the Saudi has also showed interest in investing in other projects, including China-Pakistan Economic Corridor (CPEC) projects.
"Currently, Pakistan needs three to four more oil refineries and we will welcome Saudis, Chinese, UAE, Russian or any other country to invest in the establishment of refineries. Pakistan will provide better investment environment to investors," Khan said.