UAE to invest $500 million to set refinery in Pakistan

The move will help reduce imports and meet the country's growing energy needs

The UAE has signed an agreement with Pakistan to set up an oil refinery in northwestern Khyber Pakhtunkhwa province as part of efforts to reduce imports and meet the country's growing energy needs.

UAE's Al-Motahaden Petroleum Refineries will invest $500 million for the refinery which will be preferably set up in Khyber-Pakhtunkhwa.

The Express Tribune reported that a memorandum of understanding was signed by Al-Motahaden Petroleum Refineries and the Board of Investment (BoI) yesterday.

Pakistan's Petroleum and Natural Resources Minister Shahid Khaqan Abbasi, BoI Chairman Miftah Ismail and the UAE ambassador were present at the ceremony.

The refinery would have the capacity to process about 15,000 to 20,000 barrels of oil per day.

Al-Motahaden Petroleum Refineries will form a consortium consisting of local and foreign companies to develop the project and make the required foreign direct investment in Pakistan.

The initiative will support Pakistan's efforts to fulfill its energy requirements and enhance economic development.

Speaking on the occasion, BoI Chairman Miftah Ismail assured the UAE investors of full assistance and support for getting the required administrative and regulatory approvals.