Biggest ever $5b FDI reflects investors trust: PM
By Asad Cheema

ISLAMABAD—Prime Minister Shaukat Aziz Tuesday said biggest ever foreign investment of US $ 5 billion for establishment of oil refinery reflects the confidence of investors in policies of the present government. He was talking to the UAE delegation headed by Muhammad Bin Dhalen Al- Hamili, UAE Minister for Energy prior to the signing of MoU here at the PM’s House.
Pakistan is an ideal country for investments and signing of MoU with UAE speaks itself of country’s investment policies, he said and added today is an historic day where Pakistan is receiving the biggest ever Foreign Direct Investment (FDI) for setting-up an oil refinery at Khalifa Point in the coastal area near Hub Balochistan.
The Prime Minister said the signing of MOU is a symbol of friendship between the two countries. He said the refinery would not only fulfill the domestic needs but also cater for international demand. This would also help in creating new jobs and fill energy demand gap. He said the economic turn around in the last five years has positioned Pakistan as one of the fastest growing economies in Asia. The size of the economy, he said has doubled and GDP is growing at an average of 6-8% per annum thus reducing poverty, increasing per capita income to US$ 1000, generating more employment opportunities and improving the standard of living of the people resulting in growing middle class in the country.
Referring to the demographic situation of Pakistan, the Prime Minister said out of a total population of 160 million people, 100 million are below the age of 25 and by imparting them with necessary job skills, this would be an asset for the country and it would be a great attraction for the foreign investors. He said this year alone 100,000 people have been trained in different disciplines through National Vocational and Technical Education Commission to contribute towards the development of national economy.
The Prime Minister said because of new initiatives undertaken in the communication sector, the tele-density in country has also increased to 46 % and is continuously increasing.
He said it is due to our unprecedented economic growth that there is a surge in demand in the energy sector and added a mix of energy plans has already been initiated to meet the demand in this regard. Highlighting the close fraternal ties between Pakistan and UAE, the Prime Minister said the relations between the two countries are based on shared faith, history and commonality of views and Pakistan always feels proud of its friendship with UAE.
Muhammad Bin Dhalen Al-Hamili appreciated the government of Pakistan’s reform agenda and economic policies which have led the country to become a destination of choice for investments. He said the relations between the two countries are time tested and would further grow in future. He said this is the biggest ever investment made by UAE government and expressed confidence that UAE would invest more in Pakistan in future.
The meeting was informed that the International Petroleum Investment Company (IPIC) of Abu Dhabi and Pak Arab Refinery Limited (PARCO) would jointly set up 200,000-300,000 barrels per day refinery named Khalifa Coastal Refinery at the Khalifa Point near Hub Balochistan and would cost approximately US$ 4-5 billion where the initial equity of PARCO would be 26% while 74% equity would be shared by IPIC.
The meeting was further informed that upon completion of the project, Khalifa Point area will develop in a new city with all civic amenities and related infrastructure. The development of port infrastructure in the form of Single Point Mooring at Khalifa Point will handle additional petroleum products in the country and will provide 1.4 million tons of additional POL storage capacity. This project will generate employment for 10,000 people during construction phase and direct employment for 1000 persons and indirect for more than 3000 during operation phase.
After the meeting the Implementation Agreement of Khalifa Coastal Refinery was signed in the presence of the Prime Minister by the Secretary Petroleum and Natural Resources, Farrukh Qayyum and Khasem Qubaisi, Managing Director IPIC.