Saudi, UAE Tighten Pakistan Links With Downstream Dollar Diplomacy

New Pakistan PM Imran Khan’s courting of Saudi and UAE is paying off with both agreeing financial assistance. The two Gulf monarchies are also poised to sign up for major Pakistan refinery projects, generating additional demand for their crude.

Since his election in July, Pakistan Prime Minister Imran Khan has assiduously courted Saudi Arabia and its close ally the UAE and his efforts look to be paying off. He made Saudi Arabia his first official overseas visit in September, before attending the Future Investment Initiative (FII) in Riyadh in October when many prominent global figures stayed away.

The kingdom promptly approved a $6bn financial assistance package for Pakistan ( MEES, 26 October 2018 ). And Saudi Arabia is now poised to invest in a refinery project in Pakistan that ought to more than double the country’s refining capacity.

Mr Khan had similarly paid two visits to Abu Dhabi by November and was then rewarded on 6 January with the first visit of Abu Dhabi Crown Prince Muhammad bin Zayed to Pakistan in 12 years. The Crown Prince reaffirmed a November agreement to lend Pakistan $3bn and to provide $3.2bn of oil on a deferred payment basis – a similar configuration to the Saudi package. (CONTINUED - 943 WORDS)

DATA INSIDE THIS ARTICLE

chart Pakistan Crude Imports ('000 B/D): UAE Maintains Top Position And 57% Share For 2017-18* As Overall Volumes Jump 24% To 212,000 B/D