Islamabad: Fareena Mazhar, the Secretary of the Board of Investment (BOI), announced on Monday (October 15) that China’s state-owned oil corporation will invest USD 15 billion in the development of an oil refinery complex in Pakistan, according to news reports. China Petroleum Pipeline Engineering Company LTD (CCP) and China Zhen Hua Import and Export Corporation will collaborate on the project.
According to reports, the refinery will be built somewhere else than the China Pakistan Economic Corridor’s approved Special Economic Zones (SEZs) (CPEC). The refinery project, on the other hand, will receive the same perks, tax reductions, and special incentives as the industries in the nine SEZs.
According to the details, the project will take four years to complete and is a special initiative approved by the Chinese government in order to encourage Foreign Direct Investment (FDI) in Pakistan.
China will be the third country to build a refinery complex in Pakistan, following the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE). As a result of the development of these projects, the country’s strategic fuel reserves are likely to grow.