HomeWorldAsiaChina-Pakistan signs MoU of 1.5 billion investment in Petroleum Sector

China-Pakistan signs MoU of 1.5 billion investment in Petroleum Sector

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Beijing, 19 October 2023 (TDI): In a significant development, Caretaker Prime Minister Anwaar-ul-Haq Kakar and Caretaker Minister for Energy Muhammad Ali were present at the signing ceremony of a Memorandum of Understanding (MoU) between United Energy Group of China and Pakistan Refinery Limited in Beijing.

The MoU was inked during the ongoing 3rd Belt and Road Forum, where Pakistan’s Caretaker Prime Minister Kakar and representatives from various developing nations, especially from Latin America and Africa, gathered for the two-day conferences, which concluded on Wednesday.

The Pakistan Refinery Limited (PRL) and the United Energy Group of China (UEG) officially inked a memorandum of understanding (MoU) to pledge a substantial $1.5 billion investment in Pakistan’s petroleum sector.

 

The agreement, overseen by Prime Minister Kakar and Pakistan’s Caretaker Energy Minister Muhammad Ali, holds great promise for Pakistan’s petroleum sector.

Notably, it foresees the reduction of costly fuel imports, as the refinery’s petrol production capacity is set to surge from 250,000 metric tons to an impressive 1.6 million metric tons, as stated by the Prime Minister’s Office.

Additionally, the agreement is expected to augment the production capacity of high-speed diesel, from 0.6 million metric tons to 2 million metric tons.

Also read: Pakistan signs Free Trade Agreement with GCC

Pakistan’s energy adversities have been an ongoing concern, prompting the nation to seek new avenues for energy procurement at more economical rates.

In this context, Pakistan has recently sought to enhance its relations with Russia, receiving its first consignments of Russian crude earlier this year. Moreover, Pakistan received its inaugural shipment of liquefied petroleum gas from Moscow last month.

Also Read: Pakistan-Russia explores new avenues for bilateral trade cooperation

Further, it was added that this milestone agreement in the petroleum sector holds the potential to alleviate Pakistan’s energy challenges, reducing dependency on expensive imported fuel and boosting domestic production capacity.

As Pakistan takes steps to diversify its energy sources and improve energy security, the collaboration between United Energy Group of China and Pakistan Refinery Limited signals a positive and progressive development in the nation’s quest for energy sustainability.

Abdul Sadiq
Abdul Sadiqhttps://thediplomaticinsight.com/
A dedicated student currently pursuing a degree in Political Science entering my third semester at University of Central Punjab Lahore, Motivated and analytical with a deep passion for understanding and contributing to the complexities of governance, policy-making, and political systems. Equipped with a solid foundation in political theory, international relations, and comparative politics, I possess strong research, critical thinking, and communication skills.

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