Islamabad, October 30, 2026: Pakistan and Saudi Arabia have agreed to strengthen strategic cooperation in oil storage, refinery upgrades, crude oil and liquefied petroleum gas (LPG) supplies, and the minerals sector to enhance bilateral economic ties and energy security.
Saudi Arabia has also introduced same-day processing of visa applications for Pakistani citizens at its embassy in Islamabad to facilitate travel and promote business and people-to-people exchanges.
The developments were announced following a meeting between Federal Minister for Petroleum Ali Pervaiz Malik and Saudi Arabia’s Ambassador to Pakistan, Dr Rajeh bin Tami Al-Baqami, during which the two sides discussed opportunities for expanding cooperation in the petroleum, energy and mining sectors.
According to a statement issued by the Petroleum Division, the petroleum minister appreciated the longstanding strategic partnership between the two countries and informed the Saudi envoy that Pakistan had approved a tax-neutral bonded policy modelled on international energy hubs such as Fujairah and Singapore.
Under the framework, Saudi companies will be able to establish commercial oil reserves in Pakistan without local tax liabilities, providing an opportunity to diversify maritime transit risks associated with the Strait of Hormuz and Bab al-Mandab while facilitating access to Asian markets.
The minister said strategic petroleum storage facilities in Pakistan would offer Saudi Arabia greater flexibility in managing supply routes and accessing regional markets.
He also highlighted Pakistan’s plan to establish a major petroleum storage and refining complex at Hub in Balochistan under the guidance of Technip Energies UK.
The proposed facility, supported by the prime minister and the chief of defence forces, will have the capacity to accommodate Very Large Crude Carriers (VLCCs), strengthening Pakistan’s potential as a regional energy corridor serving Central Asian and Chinese markets, the statement quoted Malik as saying.
Saudi investment sought in refinery upgrades
Malik also briefed the ambassador on investment opportunities under Pakistan’s ongoing refinery upgradation programme, which aims to modernise domestic refining infrastructure, improve operational efficiency and facilitate a transition to Euro-5 fuel standards.
He said the programme offered significant opportunities for Saudi investment and participation in Pakistan’s refining sector.
Appreciating Saudi Arabia’s support during recent disruptions in global energy markets, the minister thanked Saudi authorities at Yanbu port for prioritising crude oil shipments to Pakistan.
The two sides also discussed coordination with Saudi Aramco to increase crude oil procurement and arrange dedicated LPG shipments to meet Pakistan’s energy requirements, particularly in view of the expected increase in domestic gas demand during the winter season.
Saudi Arabia announces same-day visa processing
The Saudi ambassador informed the minister that the embassy in Islamabad had introduced same-day processing of visa applications for Pakistani citizens, a move expected to facilitate travel and strengthen business, cultural and people-to-people contacts.
Both sides reaffirmed that their strong defence and strategic partnership provided a solid foundation for expanding economic cooperation and promoting regional peace and stability.
Ambassador Al-Baqami conveyed Riyadh’s deep appreciation for Pakistan’s longstanding support, emphasising that the two countries stood together in all circumstances.
He said their defence and energy cooperation frameworks were aimed at promoting peace, stability and economic growth across the region.
Cooperation in minerals sector
The petroleum minister also invited Saudi Arabia’s Vice Minister of Mining, Khalid Al-Mudafier, to participate in the Pakistan Minerals Investment Forum, scheduled to take place in Islamabad on November 12 and 13.
The invitation highlighted opportunities for greater Saudi investment and cooperation in Pakistan’s mineral resources sector.
Both sides expressed their commitment to strengthening bilateral relations through increased investment, strategic cooperation and mutually beneficial partnerships in the energy and petroleum sectors.
Malik assured the Saudi envoy that Pakistan deeply valued its historic relationship with the Kingdom and remained committed to expanding cooperation across key strategic sectors.
Earlier in July, Prime Minister Shehbaz Sharif directed the authorities to enhance Pakistan’s strategic petroleum reserves, while a cabinet committee approved amendments to the country’s oil refining policy.
