ISLAMABAD – (Choudhry Mudassir) – Pakistan and Saudi Arabia have agreed to work more closely on oil, refineries and minerals. The goal is to build stronger economic ties between the two friendly countries. The Petroleum Division shared the news in a statement on Friday.
The talks also covered oil storage and the purchase of crude oil and liquefied petroleum gas (LPG). Saudi Arabia also announced that its embassy in Islamabad will now process visas for Pakistani citizens on the same day.
Petroleum Minister Ali Pervaiz Malik discussed these plans with Saudi Arabia’s new ambassador, Dr Rajeh bin Tami Al-Baqami. They looked at ways to improve cooperation in mining, petroleum and energy.
Storage is a big concern for Pakistan. The country has no strategic petroleum reserves. The US-Iran war has disrupted supplies through the Strait of Hormuz, which has left Pakistan open to oil shocks.
(1/2) Federal Minister Ali Pervaiz Malik met 🇸🇦 Amb H.E. Dr. Rajeh bin Tami Al-Baqmi to discuss expanding strategic cooperation in oil storage, refinery upgradation, LPG supplies and minerals. The Minister highlighted investment opportunities in Pak’s bonded oil storage https://t.co/ydej04fpeI
— Petroleum Division, Ministry of Energy (@Official_PetDiv) October 30, 2026
To fix this, Pakistan has approved a tax-neutral bonded policy. It is modelled on energy hubs such as Fujairah and Singapore. Saudi companies can keep commercial oil reserves in Pakistan without paying local taxes.
The minister said this could help reduce risks around the Strait of Hormuz and Bab al-Mandab. He also said it would give Saudi Arabia easier access to Asian markets.
Pakistan also plans a large storage and refining complex at Hub in Balochistan. Technip Energies UK will guide the project. It is meant to handle Very Large Crude Carriers and serve Central Asian and Chinese markets.
The minister also spoke about Pakistan’s refinery upgrade programme. It aims to modernise refineries, improve efficiency and move to Euro-5 fuel standards. He invited Saudi investors to take part.
Malik thanked Saudi authorities at Yanbu port for giving priority to crude shipments for Pakistan. He also spoke about working with Saudi Aramco to buy more crude oil and arrange special LPG shipments. Gas demand is expected to rise this winter.
On minerals, Malik invited Saudi Vice Minister of Mining Khalid al-Mudafier to the Pakistan Minerals Investment Forum. It will take place in Islamabad on November 12 and 13.
The Saudi ambassador thanked Pakistan for its long support. He said the two countries stand together in all situations. Both sides said their defence and energy ties support peace and growth in the region.
Earlier in July, Prime Minister Shehbaz Sharif told officials to increase the country’s strategic petroleum reserves.
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