Saudi Arabia, Russia investment: an impetus to Pakistan energy sector.

• Author: Nisar, Ahsan

Byline: Ahsan Nisar

Ardent interest of Saudi Arabia

Pakistan wants to develop Gwadar not only as an economic hub but also an oil city consisting of oil refineries and petrochemical complexes under CPEC. Gwadar's port is being developed as part of the $64 billion China-Pakistan Economic Corridor, an ambitious plan to build energy and transport links connecting the western Chinese region of Xinjiang with the Arabian Sea via Pakistan, as part of Beijing's broader Silk Belt and Road initiative.The 80,000-acres mega oil city at Gwadar will be used to transport oil from the Gulf region to China through the Gwadar port. This will reduce the distance to just seven days from Gwadar to the Chinese border instead of the current forty days. After the establishment of the oil city, Pakistan would be able to refine and store imported oil for onward transportation to China using the CPEC route, besides developing fuel supply chain for the landlocked Central Asian states.

Saudi Arabia has shown a keen interest in CPEC primarily to relate its economy with China and take steps in achieving its Vision 2030, which aims to diversify the economy with energy mega projects to reduce oil dependency. This would also utilize the unique location of Gwadar to become a global hub for vast economic activities. CPEC would provide the Saudis with an opportunity to participate even better in world trade traffic. Saudi Arabia will also be able to help China have a better crude oil supply. China is one of the largest oil consumers and highly dependent due to its trade and business activities. Therefore, Pakistan and Saudi Arabia both can benefit from the exclusive trade routes under CPEC.

Saudi Arabia has shown a keen interest in diverse fields, including mineral, fertilizer, wind and solar energy and has also offered assistance in establishing LNG reservoirs. Presently...