Saudi Arabia is moving forward with a huge $10 billion investment to build one of Pakistan’s largest oil refineries in Gwadar, Balochistan. This major project is expected to greatly improve Pakistan’s energy security and reduce its heavy dependence on imported refined petroleum products.
The refinery will be a joint venture between Saudi Aramco and Pakistani state-owned companies. Saudi Aramco is likely to hold around 60% stake, while local partners, including Pakistan State Oil (PSO), Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings (Private) Limited (GHPL), will contribute 40-45%. The plant is planned to process 300,000 to 400,000 barrels of crude oil per day.
This development comes as Pakistan continues to strengthen economic ties with Gulf countries. The project will help cut down the country’s massive oil import bill, create thousands of jobs, and boost economic activity in Gwadar, a key part of the China-Pakistan Economic Corridor (CPEC).
To attract this investment, the Pakistani government is offering attractive incentives, including a 20-year tax exemption on imported machinery and other facilities.
The idea of a Saudi-backed refinery in Gwadar was first discussed in 2019, but it has now gained fresh momentum with reports of finalised plans in April 2026. Once completed, the refinery will expand Pakistan’s refining capacity and bring long-term stability to the energy sector.
This $10 billion project highlights the growing strategic partnership between Pakistan and Saudi Arabia. It is seen as a big win for Pakistan’s economy and a step towards self-reliance in energy.