ISLAMABAD – Saudi Aramco is making major strides in Pakistan’s energy sector with a two-pronged investment strategy that includes acquiring a 40% stake in Gas & Oil Pakistan Ltd. (GO) and negotiating a multibillion-dollar refinery project in Balochistan. These moves align with Saudi Arabia’s Vision 2030 and Pakistan’s energy security goals.
The $100 million acquisition of GO, finalized in May 2024, marks Aramco’s entry into Pakistan’s downstream retail market. GO operates over 1,200 fuel stations nationwide and will now distribute Aramco-branded fuels and Valvoline lubricants, expanding Aramco’s brand visibility across the country.
In parallel, Aramco is in talks with the Pakistani government to develop a $10–12 billion mega refinery in Gwadar or Hub, with a proposed capacity of 250,000–300,000 barrels per day. The company is seeking incentives including a 20-year tax holiday, import duty exemptions, and a guaranteed internal rate of return of 12–15%.
The refinery is expected to reduce Pakistan’s reliance on imported refined fuels, create thousands of jobs, and boost industrial capacity in underdeveloped regions.
These investments are part of a broader Saudi initiative, which includes $2 billion worth of MOUs signed in October 2024 across energy, agriculture, mining, and tech sectors. Aramco’s global expansion also includes a 10% stake in China’s Hengli Petrochemical and a 20-year LNG deal with NextDecade in the U.S.
Aramco’s growing presence in Pakistan signals a new era of bilateral cooperation, promising enhanced energy security, infrastructure development, and economic resilience.
