Pakistan, China sign MoU for $1.5b investment in petroleum sector

BEIJING: Pakistan and China on Wednesday signed a Memorandum of Understanding (MoU) for investment worth $1.5 billion in the petroleum sector, ARY News reported.

The agreement was signed between Pakistan Refinery Limited and United Energy Group of China. Caretaker Prime Minister (PM) Anwaarul Haq Kakar and Federal Energy Minister Muhammad Ali also witnessed the ceremony.

The MoU will help increase the petrol production capacity of the refinery from 250,000 metric tons to 1.6 million metric tons and high-speed diesel from 0.6 million metric tons to 2 million metric tons.

The petrol and high-speed diesel coming from the refinery would prove to be an alternative of the imported costly fuel.

Meanwhile, Pakistan and China also singed MoUs/Agreements in areas of commerce, communication and transport including MLI, connectivity food security & research, media exchanges, space cooperation, urban sustainable development, capacity building, mineral development and industrial cooperation, climate change, vaccine development.

PM Kakar reached Beijing on Monday to participate in the 3rd Belt and Road Forum (BRF) for International Cooperation.

Earlier, PM Anwaarul Haq Kakar invited Chinese companies to invest in solar parks in Pakistan to help the country reduce energy import bill.

As part of green technology, PM Kakar invited the Chinese companies to invest in Pakistan’s solar parks and called for strengthening energy linkages between Gilgit and Xingiang region.

The interim premier said investments in solar parks would benefit two-fold, explaining that “on one hand they will support Pakistan’s endeavours to climate action and also help reduce energy import bill”.