KARACHI: Pakistan and the Kingdom of Saudi Arabia have finalized the Memorandum of Understand (MoU) for the construction of multi-billion dollar Saudi Aramco oil refinery in Gwadar deep seaport city, located in Balochistan province, officials said on Thursday.
Pakistan is expecting to sign a number of investment deals including the construction of mega oil refinery in the month of February in the presence of a high-level Saudi delegation, confirmed Information Minister Fawad Chaudhry.
“The oil refinery project is the biggest investment project of Saudi Arabia in Pakistan,” he added.
Pakistan and Saudi Arabia have lately expressed renewed interest in enhancing bilateral strategic and trade engagements while the Kingdom also pledged $3 billion in a financial assistant to help Pakistan out of its economic woes.
“A 15-member delegation of Saudi Arabia visited Gwadar from Karachi as part of the finalization process of the MoU for Aramco oil refinery,” Haroon Sharif, Minister of State and Chairman of Pakistan Board of Investment (BoI), told Arab News.
“We have finalized the MoU for the construction of Aramco oil refinery,” Sharif said adding that “overall directions have been agreed upon and the agreement will be signed at an ‘appropriate time’.”
Pakistani authorities expect $15 billion investment from Saudi Arabia after Prime minister Imran Khan chose the Kingdom for his maiden visit and consequently made two official visits.
Earlier, the BoI chief had said that “We are going to sign MoUs with Saudi Aramco and Acwa Power within few weeks. Saudi Aramco is going to set up oil refinery and petrochemical complex in Pakistan while Acwa Power will invest in Pakistan renewable energy sector”, Sharif informed.
As part of the investment plan, the Saudi Aramco will construct petrochemical complex housing multi-billion dollar oil refinery.
“I am expecting around $15 billion investment from Saudi Arabia in the next 3 years. The inflow of investment for oil refinery and petrochemical complex in Pakistan is estimated to be between $6 billion to $10 billion,” BoI Chairman told Arab News.
Pakistan hopes to attract more than $40 billion in Foreign Direct Investment (FDI) during the next five years. “We estimate that roughly around $40 billion investment will be made by these three countries (Saudi Arabia, UAE, and China) in the next three to five years,” Sharif had told Arab New during his recent interview.
During the recent visit of the Saudi delegation to Gwadar, the Chairman of Gwadar Port Authority, Dostain Khan Jamaldini, on Wednesday gave a briefing about the current developments including the port, progress on China-Pakistan Economic Corridor (CPEC) and Gwadar Master Plan.
Pakistan, KSA set to ink multi-billion dollar Aramco oil refinery deal
Pakistan, KSA set to ink multi-billion dollar Aramco oil refinery deal
- MoU for construction of mega oil refinery will be inked in February, says information minister
- Pakistan expects $15 billion investment from Saudi Arabia in the next 3 years
Normalcy slowly returns to Azad Kashmir as ceasefire holds
- India and Pakistan agreed to a ceasefire on Saturday after exchanging drone, artillery and missile attacks
- Residents return to homes near contested border in Azad Kashmir but remain skeptical of lasting peace
CHAKOTHI, AZAD KASHMIR: Shops began reopening in Azad Kashmir on Sunday (May 11) after India and Pakistan agreed to a ceasefire along their contested border, but residents expressed doubts about how long the peace would last without a political solution to the decades-old Kashmir dispute.
The border town of Chakothi, which had borne the brunt of recent cross-border shelling, showed tentative signs of normalcy as shopkeepers returned to assess damage and restart businesses. Many residents who had fled the violence remained hesitant to return.
“We’ll restart business but it will take time,” said Shabbir Abbasi, a shopkeeper and head of the local traders’ union. “People won’t come back until there’s a proper ceasefire agreement.”
The nuclear-armed neighbors agreed to stop cross-border firing in Kashmir, but locals said temporary truces were not enough.
“The Kashmir issue must be resolved now if they want real peace,” Abbasi told Reuters.
Some residents welcomed the pause in violence but remained skeptical.
“A ceasefire is good, but talks to resolve Kashmir would be better,” said Mohammad Aslam, a Chakothi resident.
Muhammad Munir noted that people don’t rely much on ceasefire agreements.
“Today there is a ceasefire but by evening there may be firing here,” he said. “That’s why people don’t rely on this too much, they don’t think this is a final thing.”
Hafiz Muhammad Shah Bukhari, a resident of district Poonch in India, was also happy at the cessation of hostilities.
“There is a lot of joy in the village [after ceasefire],” he said. “Personally, I am very thankful to Allah. It is a very good decision that the shelling has stopped.”
Saturday’s ceasefire marks the temporary end to fighting that started on Wednesday (May 7), two weeks after 26 men were killed in an attack targeting Hindus in Pahalgam in Indian-administered Kashmir.
Pakistan welcomes Kurdish PKK’s disbandment, ending 40-year Turkiye insurgency
- Since the PKK launched its insurgency in 1984, the conflict has killed more than 40,000 people, exacted huge economic losses
- PKK’s decision will give President Tayyip Erdogan the opportunity to boost development in Turkiye’s mainly Kurdish southeast
ISLAMABAD: Pakistan on Monday welcomed the decision by the Kurdistan Workers Party (PKK) group, which has been locked in bloody conflict with the Turkish state for more than four decades, to disband and end its armed struggle.
Since the PKK launched its insurgency in 1984, the conflict has killed more than 40,000 people, exerted a huge economic burden and fueled social tensions. The PKK is designated a terrorist group by Turkiye and its Western allies.
Taking to X, Pakistani Prime Minister Shehbaz Sharif called the PKK’s dissolution a “historic development.”
“Pakistan welcomes the announcement of PKK’s dissolution, a significant step toward lasting peace and a terror-free Turkiye,” he wrote.
The Firat news agency, which is close to the group, reported on Monday that the PKK 12th Congress decided to “dissolve the PKK’s organizational structure and end the armed struggle.”
The PKK held the congress in response to a February call to disband from its jailed leader Abdullah Ocalan, who has been imprisoned on an island south of Istanbul since 1999. It said on Monday that he would manage the process.
On Mar. 1, the PKK announced a unilateral ceasefire, but attached conditions, including the creation of a legal framework for peace negotiations.
“The PKK has completed its historic mission,” the PKK statement said. “The PKK struggle has broken the policy of denial and annihilation of our people and brought the Kurdish issue to a point of solving it through democratic politics.”
The PKK’s decision will give President Tayyip Erdogan the opportunity to boost development in Turkiye’s mainly Kurdish southeast, where the insurgency has impaired the regional economy for decades.
A deputy leader of the pro-Kurdish DEM Party, the third largest in Turkiye’s parliament and which played a key role in facilitating Ocalan’s peace call, told Reuters the PKK decision was significant not just for Kurdish people but for the Middle East as a whole.
“It will also necessitate a major shift in the official state mentality of Turkiye,” DEM’s Tayip Temel said.
- With inputs from Reuters
Pakistan, Saudi Arabia reaffirm commitment to strengthen bilateral ties
- Pakistan’s deputy premier and foreign minister meets Saudi ambassador to Pakistan in Islamabad
- Saudi Arabia was actively involved in de-escalating tensions between nuclear-armed India and Pakistan
ISLAMABAD: Pakistan and Saudi Arabia reaffirmed their commitment to further strengthen bilateral relations between the two countries, Pakistan’s foreign ministry said on Monday.
The development took place as Saudi Ambassador Nawaf bin Said Al-Malki called on Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar in Islamabad. Their meeting took place days after Pakistan and India agreed to a ceasefire on Saturday after exchanging lethal missile, drone and artillery strikes.
“They discussed the full gamut of bilateral ties and reaffirmed their commitment to further strengthen already existing fraternal relations across all sectors,” Pakistan’s foreign ministry said about Dar’s meeting with Malki.
Saudi Arabia was one of the few countries that were actively engaged in de-escalating tensions between India and Pakistan last week after the former launched missile strikes against the latter on Wednesday.
Saudi Arabia’s Foreign Minister Faisal bin Farhan spoke to Dar over the phone on May 10, expressing condolences over the loss of lives due to India’s strikes. The two had spoken after Saudi Minister of State for Foreign Affairs Adel Al-Jubeir visited Pakistan after his surprise stop in New Delhi for talks with Indian officials.
Saudi Arabia and Pakistan share close diplomatic and strategic relations. The Kingdom has extended significant support to Pakistan during prolonged economic challenges faced by Islamabad in recent years, including external financing and assistance with International Monetary Fund (IMF) loan programs.
The two regional and economic allies signed 34 agreements worth $2.8 billion in October last year. The Kingdom is home to over 2.7 million Pakistani expatriates, serving as the top destination for remittances for cash-strapped Pakistan.
India reopens 32 airports after ceasefire with Pakistan
- From Srinagar in Indian-administered Kashmir to Bhuj in the western state of Gujarat, airports now available for civil operations “with immediate effect“
- They were closed last week after fierce fighting erupted between India and Pakistan for four days, setting off global alarm it could spiral into full-blown war
NEW DELHI: India reopened 32 airports on Monday following a weekend ceasefire that ended the worst fighting with neighboring Pakistan since 1999.
The Airport Authority of India said the 32 — from Srinagar in Indian-administered Kashmir to Bhuj in the western state of Gujarat — were now available for civil operations “with immediate effect.”
They were closed last week after fierce fighting erupted between India and Pakistan for four days, setting off global alarm it could spiral into full-blown war.
Leading Indian airline IndiGo said it would “progressively commence operations on the previously closed routes.”
The truce was announced on Saturday, but both sides immediately accused the other of breaking it.
However, both India and Pakistan said the border areas were calm on Monday.
Pakistan stock market opens at single-day high, recovering losses after India standoff
- Benchmark KSE-100 Index opens at 117,104.11, up by 9,929.48 points, largest single-day gain on record
- Pakistani stocks also rally following the IMF’s approval on Friday of a loan program review for Pakistan
KARACHI: The benchmark KSE-100 Index at the Pakistan Stock Exchange (PSX) opened at 117,104.11 points on Monday, up by 9,929.48 points, marking the largest single-day increase in index points after a weekend ceasefire agreement with India.
Pakistan’s stocks rallied after US President Donald Trump announced a ceasefire between nuclear-armed neighbors India and Pakistan. Both states had exchanged missile, drone and artillery strikes last week amid surging tensions.
The development is a breath of fresh air for the stock market, which saw a record-breaking 6,482-point plunge last Thursday. This was the largest single-day decline in the index’s history as investors feared an escalation in the conflict between India and Pakistan.
“Pakistan Stock Market opens at a single-day record,” Khurram Schehzad, adviser to the finance minister, said in a statement. “A new record for a single day, way more than the single-day decline it recorded last week.”
Pakistani stocks also rallied after the International Monetary Fund (IMF) approved a loan program review for Pakistan on Friday. The IMF nod helped unlock around $1 billion in much-needed funds for Islamabad and greenlit a new $1.4 billion bailout despite New Delhi’s objections.
“Pakistan has much more to offer, given IMF’s board approval of $2.4 billion, further decline in interest rates, Pakistan’s measured and responsible response in both its narrative and actions on-ground,” Schehzad noted.
The official said these developments and a potential “positive” spillover effect of a likely settlement of the US-China tariff dispute, had caught investors’ eye and caused the stocks to rally.
Schehzad noted that renewed investor confidence, enhanced IMF funding and support, a low inflation rate and stable currency parities in the region all position Pakistan “for a more meaningful economic upside moving forward.”
Earlier during the day, a five percent increase in the KSE-30 index from the previous trading day’s close led to a market halt as per stock market regulations. All equity and equity-based markets were suspended, as per a notification of the PSX.
Markets reopened around 10:42 a.m. local time (0542 GMT).
