Pakistan Approves $3.5 Billion Chinese-Funded Oil Refinery

DID Press: Pakistan’s Ministry of Planning and Development has approved the construction of a major oil refinery in the Dhabeji area near Karachi, backed by $3.5 billion in Chinese investment.

The project will be developed under the China-Pakistan Economic Corridor (CPEC) and, according to the CPEC Secretariat, represents the largest private-sector commercial investment between the two countries to date.

Pakistan’s Planning Ministry said the refinery will have the capacity to process 100,000 barrels of crude oil per day and produce petroleum products meeting Euro 5 standards.

The complex will also include storage capacity for four million tonnes of petroleum products and a dedicated 50-megawatt power plant.

Technical and construction agreements for the project have been signed with Chinese companies Xinjiang Petroleum and China Gezhouba Group Corporation (CGGC).

Pakistani officials say the refinery will increase domestic refining capacity and help reduce the country’s dependence on imported petroleum products.

The project is expected to be implemented without requiring sovereign guarantees or government financial guarantees from Pakistan.