ISLAMABAD: The federal cabinet scheduled to meet today (Thursday), is expected to approve the MoU regarding setting up of an oil refinery in Gwadar by Saudi Arabia.

The draft of the MoU is to be placed before the cabinet and after the cabinet nod, Saudi’s energy minister would visit Pakistan to formally sign the deal with Pakistan. The minister is expected to visit next month, official sources told The News.

It is worth mentioning that Pakistan and Saudi Arabia have principally decided to set up the refinery, acquisition of land for it has almost been completed. This project has been conceived a few months back, and in October a high-powered delegation from the Kingdom visited Pakistan and also travelled to the proposed site of the refinery.

Saudi government is investing around $5 billion to $8 billion in the refinery with a capacity up to 0.4 million barrels per day to meet the growing demand of the Pakistan and China. The refinery would have the potential to further increase its capacity.

Official said that these are the preliminary information however the feasibility study would be carried out having the exact details of the cost and the capacity and other details after signing of the deal by both the countries. Official said that the Saudi government is also interested in investing in mining sector of the country, especially in Balochistan.