Large-scale Chinese investment in Pakistan’s energy sector
Islamabad — A major development has emerged regarding foreign investment in Pakistan’s energy sector, where China’s well-known Shandong Group has formally proposed a long-term strategic partnership and large-scale investment in Pakistan’s energy industry.
The proposal was presented by Shandong Group Chairman Hou Jianxin during an important meeting in Islamabad with Federal Minister for Petroleum Ali Pervaiz Malik. The Chinese delegation expressed strong interest in increasing oil and gas production in Pakistan, along with drilling operations and field optimization.
Refinery upgrades and manufacturing plant proposal
According to an official statement from the Petroleum Division, the Chinese group has presented a comprehensive plan to modernize both the downstream and upstream energy sectors in Pakistan. Key points include:
- FCC unit installation: Upgrading Pakistani refineries with modern Fluid Catalytic Cracking (FCC) units.
- Local manufacturing facility: Establishing a plant in Pakistan to produce advanced energy equipment, with export targets aimed at Middle Eastern markets.
- Offshore energy and energy cities: Exploration of offshore oil and gas reserves, sulfur processing plants, and development of specialized “energy cities.”
New chapter in Pakistan–China cooperation, government commitment reaffirmed
Federal Minister Ali Pervaiz Malik welcomed all proposals from the Chinese company and stated that the government is committed to promoting investment and value addition in the energy sector.
He also immediately directed the Petroleum Division to appoint focal persons for swift implementation of the Chinese company’s proposals.
The minister said these investment proposals will play a vital role in Pakistan’s energy self-sufficiency and economic development, further strengthening Pakistan–China strategic cooperation.