Pakistan offers Saudi Arabia tax-free oil storage under new bonded policy

Pakistan has cleared a framework that would let Saudi firms store petroleum in bonded facilities without facing local tax charges, Profit by Pakistan Today reported. The measure was discussed on Friday by Petroleum Minister Ali Pervaiz Malik and Saudi Ambassador Dr Rajeh bin Tami Al-Baqami, as the two countries looked to deepen energy ties and bring investment into Pakistan. Officials said the model draws on established storage centres, including Fujairah and Singapore, and could help Saudi Arabia manage supply routes and reach nearby markets.

Malik also outlined a proposed storage and refining site at Hub, Balochistan, designed for Very Large Crude Carriers, and sought Saudi participation in Pakistan’s refinery modernisation drive. That programme aims to raise operating efficiency and move domestic fuel production towards Euro 5 standards. The meeting covered possible additional crude purchases and dedicated LPG deliveries through coordination with Saudi Aramco, particularly as winter demand for gas rises, while the minister also invited Saudi Arabia to the Pakistan Minerals Investment Forum on November 12-13 in Islamabad.