ISLAMABAD (The Thursday Times) — Pakistan has offered Saudi Arabia tax-free facilities to store oil on its soil, approving a bonded policy that lets Saudi companies set up commercial crude reserves in the country without any local tax liability.
Petroleum Minister Ali Pervaiz Malik told Saudi Arabia’s new ambassador, Dr Rajeh bin Tami Al-Baqami, that the “tax-neutral” framework had been benchmarked against international energy hubs such as Fujairah and Singapore, according to a statement issued after their meeting.
Storing oil in Pakistan would give the kingdom a way to spread the maritime risks of shipping through the Strait of Hormuz and the Bab al-Mandab, and more flexibility in reaching Asian markets, the minister said. The offer comes as Riyadh faces repeated Houthi attacks and threats to Red Sea shipping.
Malik also pointed to plans for a major petroleum storage and refining complex at Hub in Balochistan, being developed with guidance from Technip Energies UK. The facility is designed to handle Very Large Crude Carriers and would strengthen Pakistan’s role as an energy corridor to Central Asia and China.
He invited Saudi investment in Pakistan’s refinery upgrade programme, which aims to modernise domestic refineries and move to Euro 5 fuel standards, and discussed working with Saudi Aramco on more crude cargoes and dedicated LPG shipments ahead of the winter rise in gas demand. The minister thanked Saudi authorities at Yanbu port for prioritising crude shipments to Pakistan during recent disruptions in global markets.
The ambassador announced that the Saudi embassy in Islamabad has introduced same-day processing of visa applications for Pakistani citizens to make business, cultural and family travel easier.
