{
  "id": 17205664,
  "title": "Pakistan offers tax-free oil storage facilities to KSA",
  "url": "https://urgent.news/2026/10/30/pakistan-offers-tax-free-oil-storage-facilities-to-ksa",
  "topic": "world",
  "section": "World",
  "published": "2026-10-30T09:36:03.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40446679/pakistan-offers-tax-free-oil-storage-facilities-to-ksa"
  },
  "original_language": "en",
  "account": "In a move to entice foreign investment, Pakistan has introduced a tax-neutral policy enabling Saudi companies to create commercial oil reserves on its soil without incurring local tax obligations. This strategic decision surfaced during an assembly between Federal Minister for Petroleum Ali Pervaiz Malik and the recently appointed Saudi Arabian Ambassador to Pakistan, Dr. Rajeh bin Tami Al-Baqami. The two discussed possibilities of bolstering bilateral ties in areas such as mining, petroleum, and energy sectors, encompassing strategic oil storage, refinery enhancement, LPG provisions, and fostering commercial collaboration. Malik divulged that Pakistan had sanctioned a tax-neutral bonded policy, modeled after successful international energy centers like Fujairah and Singapore. Under this new system, Saudi enterprises can set up commercial oil reserves in Pakistan without facing local tax burdens, thereby opening doors to diversify maritime transit risks linked to the Strait of Hormuz and Bab Al Mandeb Strait, and enhancing access to Asian markets. The minister underscored that these strategic oil storage facilities in Pakistan would grant Saudi Arabia heightened flexibility in managing supply routes and reaching regional markets. Additionally, Pakistan is set to build a major petroleum storage and refining complex at Hub, Balochistan, in collaboration with Technip Energies UK. The ambitious project will have the capacity to accommodate Very Large Crude Carriers, thereby bolstering Pakistan's potential as a regional energy conduit serving Central Asian and Chinese markets. Malik also spotlighted Pakistan's ongoing refinery upgradation initiative, designed to modernize domestic refining infrastructure, boost operational efficiency, and align with Euro 5 fuel standards. He indicated that the program presents substantial prospects for Saudi investment and participation in Pakistan's refining sector. Acknowledging Saudi Arabia's support during recent global market disturbances, Malik expressed gratitude to the Saudi authorities at Yanbu port for prioritizing crude oil shipments to Pakistan. The two also explored avenues for coordination with Saudi Aramco to consider augmented procurement of crude oil shipments and dedicated LPG deliveries to bolster Pakistan's energy requirements, specifically considering the projected rise in domestic gas demand during the winter season. The Saudi Ambassador conveyed that the Embassy of Saudi Arabia in Islamabad has initiated same-day processing of visa applications for Pakistani nationals to streamline travel and enhance business, cultural, and personal interactions. The minister also extended an invitation to Saudi Arabia's Vice Minister of Mining, Khalid al-Mudafier, to attend the Pakistan Minerals Investment Forum, slated for November 12 and 13 in Islamabad, emphasizing further avenues for cooperation and investment in Pakistan's minerals sector.",
  "summary": "In a bid to attract foreign investment, Pakistan has approved a tax-neutral bonded policy allowing Saudi companies to establish commercial oil reserves in the country without local tax liabilities. The development came during a meeting between Federal Minister for Petroleum Ali Pervaiz Malik and the new Ambassador of Saudi Arabia to Pakistan, H.E. Dr Rajeh bin Tami Al-Baqami, to discuss…",
  "key_points": [
    "Pakistan offers tax-free oil storage facilities to Saudi companies",
    "Strategic move aims to boost bilateral ties and diversify transit routes",
    "Hub, Balochistan to host major petroleum storage and refining complex"
  ],
  "editors_take": "Eliminating tax burdens for Saudi firms transforms Pakistan into a strategic energy hub that allows Middle Eastern suppliers to bypass maritime transit risks and more efficiently access Asian markets.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}