Federal Minister for Petroleum Ghulam Sarwar khan on Thursday said that Pakistan and Saudi Arabia will sign a Memorandum of Understanding (MoU) to establish oil refinery in Gwadar with in near future. Addressing a press conference along with Information Minister Fawad Chaudhry he said, "The cabinet gave approval for the agreements discussed between Pakistan and Saudi Arabia during a visit of the Kingdom's delegation last week for establishing of oil refinery. Both the countries will sign MoU after the arrival of Saudi Arabia energy minister to Pakistan by the end of current month or in the beginning of next month.” The minister said, "Saudi Arabia is interested in Gwadar and the China-Pakistan Economic Corridor. Moreover they have expressed their ardent desire to immediately invest in an oil refinery, cost, capacity and others modalities will be finalized soon."The minister dispelled the impression that China had shown any concerns regarding the establishment of oil refinery by the Saudi Arabia.”We want to establish four to five new oil refineries and any countries can make investment” he added. "It has been agreed that it will be a government to government (G2G) agreement," Minister Patroleum further added. "Saudi Arabia's minister of energy will visit Islamabad by the end of current month or next month to sign the document," The minister said, "At the time of the agreements, provincial governments will also be taken into confidence," Ghulam Sarwar khan said “Prime Minister Imran Khan had been given warm welcome in the Saudi Arabia and the leadership during the meeting had shown keen interest to make the investment in Pakistan,” He dispelled the impression that objective of Prime Minister Imran Khan, s visit to Saudi Arabia was to seek a financial assistance. The Minister said, that Prime Minister had asked Saudi Arabia for investment not for financial assistance. “We got positive response from the government of Saudi Arabia in this regard.” Contradicting the news about request to Saudi Arabia on provision of oil on deferred payment he said “the issue of defer payment had never been discussed.” He said, that soon after the visit of Prime Minister to Saudi Arabia a high powered delegation visited Pakistan and held series of meeting with various ministries. The delegation, also visited Gwadar. The Minister further said that Saudi Arabia had also been offered investment in South North gas pipeline and LNG projects. He said, the Saudi Arabia had also been asked to invest in digging and exploration of oil and gas sectors. “We have total 46 blocks and offering 10 blocks for open bidding and Saudi Arabia can also benefit from this offer.” Explaining increase in the recent gas tariff, the Petroleum Minister said only 10 to 20 percent rate has been increased for the lowest slab, which forms 80 percent of the total population, consuming gas in the country. He said 23 percent of the population uses gas as fuel. He said 143 percent increase in gas tariff will affect only 2 percent of the gas consumers. On the other side, the Minister said LPG cylinder price is being decreased from about Rs 1600 to Rs 1400, after 10% tax relief. He said the gas rate has been a little bit increased to meet the Rs 158 billion deficit incurred by the last government. Ghulam Sarwar Khan said the government is also providing relief to people on petroleum prices. He said the government will bear the burden of Rs 8 billion this month by not increasing petroleum prices. The minister also announced to conduct forensic audit of New Islamabad Airport, Pakistan Steel Mills, and Neelum–Jhelum Hydropower projects as their cost escalated manifold due to unusual delay in completion. *****
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