Pakistan PM says hopeful of progress on multibillion-dollar oil refinery during Saudi crown prince’s visit

An overview shows tankers parked outside a local oil refinery in the Pakistan's port city of Karachi on February 22, 2011. (AFP/File)
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Updated 28 October 2022
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Pakistan PM says hopeful of progress on multibillion-dollar oil refinery during Saudi crown prince’s visit

  • Islamabad and Riyadh agreed on $11 billion refinery and petrochemical complex in 2019
  • Pakistan is also expected to devise a new petroleum policy ahead of crown prince’s visit

KARACHI: Pakistan is hopeful of a breakthrough in the financing of a multibillion-dollar oil refinery project during an upcoming highly anticipated visit of Saudi Arabia’s Crown Prince Mohammed bin Salman, Pakistani Prime Minister Shehbaz Sharif said on Friday. 

Islamabad and Riyadh signed seven investment agreements worth $21 billion during the first official visit of the Saudi crown prince in February 2019. The mega investment included a $10 billion Aramco oil refinery and a $1 billion petrochemical complex in the southwestern Pakistani port city of Gwadar. 

However, a feasibility conducted in late 2019 suggested Pakistani authorities were looking for another location for the refinery project closer to the port city of Karachi rather than in the restive Balochistsn province, home to a long-running separatist insurgency. 

While no date has been confirmed for the Saudi crown prince’s visit, Pakistani officials are hopeful of a progress on the proposed oil refinery and other projects while he is in Pakistan. 

“The crown prince has assured of supporting various projects in Pakistan, including $9-$10 billion oil refinery that he brought to Pakistan in 2019,” Sharif said at a ceremony in Islamabad on Friday. 




Pakistan Prime Minister Shehbaz Sharif addresses a ceremony in Islamabad, Pakistan, on October 28, 2022. (Government of Pakistan)

The Pakistani premier visited the Kingdom earlier this week, where he also held a meeting with Crown Prince Mohammed bin Salman. He told the Saudi crown prince that the people in Pakistan were awaiting his visit. 

Speaking at the ceremony, Sharif said the Saudis had complained of a delay in the projects, including a hospital, and it was “very embarrassing” for him. 

“Recently, a team from the Saudi Development Fund visited Pakistan and they complained of the delays,” he said. 

“Believe me it was very embarrassing. I called a meeting and within 48 hours every procedure was completed.” 

The prime minister said he apologized for the delays during his recent meeting with the Saudi crown prince. 

“He (the crown prince) said ‘the people of Pakistan and Saudi Arabia are closely tied in a brotherly relationship’,” Sharif told the attendees. 

“[He] has assured of supporting various projects in Pakistan, including the oil refinery.” 

Pakistan’s petroleum products imports have increased by 6 percent to $4.86 billion during the first quarter of the current fiscal year (July-September), when compared with the same period last year, according to the Pakistan Bureau of Statistics. 

The South Asian nation is already grappling with declining foreign exchange reserves and a widening current account deficit, besides higher inflation. 

Pakistani experts and individuals familiar with the developments have called for an independent company and board for the implementation of the refinery project. 

“Political volatility on our side, weak capacity at the ministry of petroleum and land issues in Balochistan stopped it,” Haroon Sharif, former chairman of Pakistan’s Board of Investment (BOI), told Arab News. 

“If PM wants to revive, he should form an independent company with world class CEO and board to restart feasibility and implementation. Otherwise, it will remain a pipe dream.” 

The project was imitated during Haroon’s tenure as the BOI chairman. 

On Thursday, Pakistan’s Finance Minister Ishaq Dar also held a virtual meeting of a joint committee of the Saudi–Pakistan Supreme Coordination Council with Saudi Energy Minister Prince Abdulaziz bin Salman. 

Both sides discussed and reviewed areas of mutual cooperation and collaboration, including energy, industry, mineral resources, commerce, finance, investment tourism, communication, information technology, agriculture, food security, transportation, logistics and maritime to increase trade exchanges and investment, according to the Pakistani finance ministry. 

Pakistan is also expected to devise a new petroleum policy ahead of the Saudi crown prince’s visit, according to people familiar with the plans. 


In major relief for consumers, Pakistan slashes petrol price by Rs15.39 per liter

Updated 15 May 2024
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In major relief for consumers, Pakistan slashes petrol price by Rs15.39 per liter

  • After Rs15.39 per liter reduction, new price of petrol has been set at Rs273.10 per liter
  • Finance Division says decision taken due to declining prices of petroleum products in global market

KARACHI: Pakistan’s government on Wednesday slashed the price of petrol by Rs15.39 per liter for the next 15 days, with the move expected to bring major relief for consumers in a country reeling from inflation over the past two years. 

Pakistan typically adjusts petroleum prices on a fortnightly basis, taking into account fluctuations in the international energy market and the rupee-dollar exchange rate. The latest decrease brings the price of petrol down from Rs288.49 to Rs273.10 per liter. 

According to an official notification by the Finance Division released on Wednesday night, the price of high-speed diesel has also seen a downward revision of Rs7.88 per liter, setting it at Rs274.08 from Rs281.96.

“The prices of petroleum products have seen a decreasing trend in the international market during the last fortnight,” the Finance Division said in a press release. 

“The Oil & Gas Regulatory Authority (OGRA) has worked out the consumer prices, based on the price variations in the international market. The prices of Motor Spirit & HSD for the next fortnight, starting from 16th May, 2024, are accordingly being lowered.”

Pakistan slashed prices of petrol by Rs5.45 per liter on May 1 due to declining prices of petroleum products in the global energy market. 

The South Asian country significantly increased fuel prices after securing a short-term, $3 billion loan from the International Monetary Fund (IMF) last year.

The rising rates also led to spiraling inflation in the country, though the government started offering relief to the people by gradually bringing down the petroleum prices.

Pakistan is already in talks with the International Monetary Fund (IMF) to secure another loan which is expected to be bigger in terms of size and duration.


Pakistan’s religious affairs minister arrives in Saudi Arabia to review Hajj arrangements

Updated 15 May 2024
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Pakistan’s religious affairs minister arrives in Saudi Arabia to review Hajj arrangements

  • Around 15,819 Pakistani pilgrims have arrived in Saudi Arabia weeks before Hajj begins
  • Minister to review pilgrims’ accommodations and other Hajj arrangements during trip 

ISLAMABAD: Religious Affairs Minister Chaudhry Salik Hussain arrived in Saudi Arabia on Wednesday to inspect Hajj arrangements in the Kingdom, as thousands of pilgrims from Pakistan begin to arrive in the holy cities for the annual Islamic pilgrimage. 

Hajj is one of the five pillars of Islam and requires every adult Muslim to undertake the journey to the holy Islamic sites in Makkah at least once in their lifetime if they are financially and physically able. 
Pakistan has a Hajj quota of 179,210 pilgrims this year, of which 63,805 people will perform the pilgrimage under the government scheme, while the rest will use private tour operators. This year’s pilgrimage is expected to run from June 14-19.
“Federal Minister for Religious Affairs and Overseas Pakistanis Chaudhry Salik Hussain has reached Saudi Arabia to inspect Hajj arrangements,” the Ministry of Religious Affairs (MoRA) said.
The minister was accompanied by Dr. Syed Ata ur Rehman, the additional secretary of the religious affairs ministry, on his visit to Saudi Arabia. Officials of the Pakistan Hajj Mission in Saudi Arabia welcomed the minister upon his arrival at Jeddah airport. 
“The federal minister will meet senior officials of the Saudi Ministry of Hajj and Umra and the Pakistani Hajj Mission,” MoRA said. 
Hussain will be briefed about Pakistan’s Hajj operations at the control office in the Pakistan Hajj Mission, the ministry said, adding that he would also meet Hajj pilgrims in Makkah and Madinah during his trip. 
“He will also review accommodations of the Hajj pilgrims, catering companies and various other arrangements,” the ministry said.
Pakistan’s religion ministry has confirmed that around 15,819 pilgrims from the country have arrived in Saudi Arabia weeks before the Hajj begins. 
The government has set up two control rooms, one each in Makkah and Madinah, to facilitate Hajj pilgrims and ensure their pilgrimage remains hassle-free. 


Hundreds of students, civil society activists rally in Karachi to mark ‘Nakba Day’

Updated 15 May 2024
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Hundreds of students, civil society activists rally in Karachi to mark ‘Nakba Day’

  • Pro-Palestinian supporters mark May 15 as “Nakba Day” when over 700,000 Palestinians were driven from their lands in 1948 
  • Pakistani civil society members call for immediate ceasefire in Gaza, boycott against Israeli brands and those that support war in Gaza

KARACHI: Hundreds of Pakistani students and civil society activists on Wednesday rallied in the southern port city of Karachi to mark 76 years of Palestinians displaced from their homeland, calling for an end to the “genocide” in Gaza as Israel escalates military tensions in the Middle East. 

Palestinians refer to May 15 as the “Nakba,” Arabic for “catastrophe” when some 700,000 Palestinians in 1948 fled or were driven from their homes before and during the 1948 Arab-Israeli war that followed Israel’s establishment.

Protest rallies in several parts of the world were held on Wednesday amid Israel’s ongoing war on Gaza, where the Israeli military has killed at least 35,173 people and injured 79,061 others since October 7, 2023. 

Nearly a dozen civil and women’s rights organizations took part in the protest rally which began at Do Talwar roundabout in Karachi till Teen Talwar, another important landmark of the city. 

“The civil society of Karachi is marking Nakba Day today and the purpose for that is to identify that Palestinians were the actual residents or the actual people who can lay claim to the land that Israel lays claim to at this point in time,” Ahmed Shabbar, one the organizers, told Arab News. 

He called on students from other parts of the country to join the protest campaign for Gaza. 

“There are multiple layers to this campaign and we invite the civil societies of Lahore and Islamabad and Quetta and students across Pakistan as well to unite because this is just the first event,” Shabbar said. He vowed that more protests would be held in the coming days.

Shabbar said the foremost demand of the protesters was for an immediate ceasefire in Palestine and for Israel to be held accountable for its actions. 

He said Pakistan’s civil societies’ demands also include that Pakistan join South Africa in the International Court of Justice to hold Israel and its supporters accountable for its crimes in Gaza. 

Shabbar said protesters were also seeking an apology from the German ambassador to Pakistan, who had shouted at a Pakistani student for interrupting him during his speech at a conference last month. The pro-Palestinian supporter had questioned the ambassador for Germany’s support for Israel’s controversial actions in Gaza. 

He said the civil societies were also calling for a boycott of Israeli products or those brands that support Israel’s actions in Gaza. 

Mehnaz Rehman, a leader of the Aurat Foundation rights movement, said protesters had gathered to protest against Israel’s atrocities, particularly against women and children.

“They are killing children,” Rehman told Arab News. “They [people] should come forward and protest against Israel and demand a ceasefire. We demand ceasefire immediately,” she said, praising American students for raising their voices for Palestine. 

Naureen Fatima, a protester, said Palestinians were driven out of their land over seven decades ago. She lamented that history was repeating itself. 

“This is happening once again,” Fatima told Arab News. You know? And we see it’s happening under the backdrop of our complete genocide. This is happening in the year 2024.”

She criticized the international community for staying silent over Israel’s massacres in Gaza. 

“Has mankind regressed? We think we have completely regressed,” she lamented. 

“What is the point when we see that babies are being killed and they are dying? And there is no accountability, and this genocide continues. 

“We are here to protest that. We are here because we don’t want this to happen.”

Separately, hundreds of students and teachers rallied at Karachi University to protest Israel’s military campaign in Gaza and support American students protesting across Europe and the US
 


Pakistan, China to finalize modalities for third party participation in CPEC

Updated 15 May 2024
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Pakistan, China to finalize modalities for third party participation in CPEC

  • In the past, Pakistan has invited Saudi Arabia, Turkiye Germany, UAE, Iran, Indonesia, Afghanistan to join CPEC
  • Pakistani deputy prime minister is on four-day visit to Beijing to discuss second phase of multi-billion CPEC initiative 

KARACHI: Deputy Prime Minister Ishaq Dar said on Wednesday Islamabad and China needed to finalize the modalities for other countries to be part of the multi-billion-dollar China-Pakistan Economic Corridor (CPEC) project, as Islamabad seeks to attract foreign investment into Pakistan.

Dar, who is also Pakistan’s foreign minister, was speaking at a joint press conference with his Chinese counterpart Wang Yi in Beijing, which the Pakistani official is visiting on a four-day official trip as Pakistan moves into phase two of CPEC, an initiative in which Beijing has pledged to invest $65 billion.

The project spans several phases, each with distinct goals and impacts on the region. The first phase began in 2015 and mainly focused on building critical infrastructure, particularly in the transportation and energy sectors. The second phase expands the focus to include industrial cooperation, agricultural development and the promotion of social and economic development. This phase is also expected to include the development of Special Economic Zones (SEZs), efforts to boost green energy production like hydropower and solar energy, and initiatives to modernize agriculture and increase exports.

In the past, Pakistan has invited Saudi Arabia, Turkiye, Germany, UAE, Iran, Indonesia and Afghanistan to join CPEC but there has been no progress on the invitation.

“As we embark on phase two of CPEC we look forward to developing corridors of growth, livelihood, innovation, green development, and inclusivity to carry forward our shared vision of making CPEC an inclusive and transparent project,” Dar said at the press conference. 

“We also need to finalize the modalities for third party participation in CPEC.”

In 2022, then former prime minister Imran Khan welcomed all countries and international organizations to participate in the flagship project. PM Shehbaz Sharif has also invited other nations to join the project.

“We appreciate China’s development assistance to Pakistan and look forward to further enhancing China’s development footprint in Pakistan, to attract foreign investment in diverse sectors under the Special Investment Facilitation Council (SIFC),” Dar said, referring to a special body set up last year to oversee foreign investments. “I commend China’s readiness to deepen our financial bilateral trade and investment.”

Dar said his visit would help in accelerating the implementation of the Mainline-1 (ML-1) railway project, a $6.8 billion project to upgrade its railway lines, along with the realignment of the Karakoram Highway and strengthening “cooperation in agriculture, mining, minerals, energy, information technology and industrial sectors.”

The Pakistani official also condoled on behalf of the Pakistani leadership and people over the killing of five Chinese workers in a suicide bombing in Pakistan in March.

Vowing to bring the planners, financiers and perpetrators of the attack to justice, Dar said China and Pakistan would maintain close cooperation through bilateral channels in this regard.

“I have shared with his Excellency, the foreign minister, extensive and deliberate measures we have taken to protect Chinese interests in Pakistan while thanking China for acknowledging the sacrifices Pakistan has made against terrorism,” he said. 

“Let me express our focus on that. We will not rest until the last menace of terrorism is finally eliminated from Pakistan.”


Veon, partners to bridge online ‘AI language gap’ in Pakistan, other countries 

Updated 15 May 2024
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Veon, partners to bridge online ‘AI language gap’ in Pakistan, other countries 

  • Language models often rely on swathes of online data to generate human-like responses 
  • Veon and partners to develop tools in Pakistan, Ukraine, Bangladesh and other countries 

Telecom company Veon, mobile operator Beeline Kazakhstan, the Barcelona Supercomputing Center and the GSMA lobby group said on Wednesday they would work together to bridge an “AI language gap” for under-represented languages.

Large language models powering ‘bots’ like chatGPT often rely on swathes of online data, such as digital books, websites, articles and blogs to learn how to generate human-like responses. But data and resources in some languages are limited.

“Out of nearly 7000 languages spoken around the globe, only seven are considered high-resource languages in the digital world: English, Spanish, French, Mandarin, Arabic, German and Japanese,” the groups said in a joint statement.

They will collaborate on developing tools and language model documentation in under-represented languages, including those spoken in the countries where Veon operates — Pakistan, Ukraine, Bangladesh, Kazakhstan, Uzbekistan, and Kyrgyzstan.

Another language was Catalan, which is spoken by around 10 million people, the statement said.
“The lack of resources in other languages results in an AI language gap which leads to sub-optimal user experience in AI applications, deepens the bias in AI models and risks deepening the digital divide in AI technologies,” they added.