Pakistan has offered Saudi Arabia tax-free oil storage facilities, allowing Saudi companies to establish commercial petroleum reserves in the country without paying local taxes.
Federal Minister for Petroleum Ali Pervaiz Malik shared the proposal during a meeting with Saudi Ambassador to Pakistan Dr. Rajeh bin Tami Al-Baqami. The discussions covered cooperation in petroleum, mining, and energy sectors, including oil storage, refinery upgrades, and liquefied petroleum gas (LPG) supplies.
The minister said Pakistan had approved a tax-neutral bonded policy modelled on international energy hubs such as Fujairah and Singapore. Under the proposed framework, Saudi companies can store oil in Pakistan without local tax liabilities, helping the kingdom diversify shipping risks linked to the Strait of Hormuz and Bab al-Mandeb while improving access to Asian markets.
Malik also highlighted plans to establish a major petroleum storage and refining complex at Hub, Balochistan, capable of handling Very Large Crude Carriers (VLCCs). He invited Saudi investment in Pakistan’s refinery upgradation programme, which aims to modernise local facilities and introduce Euro 5 fuel standards.
The meeting also covered additional crude oil shipments through Saudi Aramco and dedicated LPG supplies ahead of higher winter demand. Meanwhile, the Saudi ambassador announced same-day visa processing for Pakistani citizens at the Saudi Embassy in Islamabad.
