Pakistan has once again urged Saudi Arabia to revive its long-delayed plan to establish a $10 billion oil refinery in Gwadar, as the coastal port city continues to emerge as a growing regional transit trade hub.
According to official sources, activity at Gwadar Port has increased by nearly 30 percent in recent months, driven by rising international shipping and shifting global trade routes. The surge has strengthened Pakistan’s case for turning Gwadar into a major energy and logistics centre.
Officials from both countries were expected to hold key discussions this week under the Pakistan-Saudi Arabia Joint Business Council, but the meeting was postponed, delaying progress on the refinery project.
Pakistan has also proposed additional investment opportunities to Saudi Arabia, including LPG and LNG terminals in Karachi, along with an Energy City project in Gwadar, designed to host strategic fuel reserves and petrochemical industries.
The refinery proposal was first discussed years ago when Saudi Arabia considered investing in Pakistan’s energy sector, but the project remained stalled due to policy delays and administrative hurdles.
Authorities now believe conditions are more favorable, especially after recent bilateral engagements and improved cooperation frameworks under the Special Investment Facilitation Council (SIFC).
Officials say Pakistan is offering a more investor-friendly environment, including a revised refinery policy, tax incentives, and reduced bureaucratic hurdles to attract foreign capital.
Saudi investors, however, have previously raised concerns over policy consistency and regulatory challenges—issues Pakistan claims are now being addressed.
Meanwhile, Pakistan has also reportedly offered Saudi Arabia a potential 15 percent stake in the Reko Diq gold and copper project in Balochistan, further expanding the scope of strategic cooperation.
Energy experts believe Gwadar’s rising maritime importance and geopolitical shifts could position it as a future regional energy and trade hub, provided planned investments materialize.