Saudi Arabia to invest in Pakistan’s Gwadar refinery

The debt to China is growing and Pakistan is seriously looking for opportunities to ward off such financial crisis. A Zerohedge article written by James Dorsey on Mid East Soccer blog lately claims the oil refinery investment of Saudi Arabia at the port city of Gwadar could threaten Iran’s India-backed Chabahar Port and this could lead China into open war between Iran and Saudi Kingdom.

It is learned the Saudi Arabia would invest up to $10 billion dollars in the region and could involve deferred payments on Saudi oil supplies.

It is also being said Pakistan would seek a $12 billion bailout from International Monetary Fund (IMF) if expenditure is not under control.

The Imran Khan-led government wants to curb spending. The railway ministry lately has cut $2 billion from a $8.2 billion project involving expansion of country’s railway network, which is a part of CPEC.

Railways Minister Sheikh Rashid had earlier said, “Pakistan is a poor country that cannot afford huge burden of the loans. CPEC is like the backbone for Pakistan, but our eyes and ears are open.”

Saudi Arabia may also invest in mines in Bolochistan apart from the Gwadar refinery.

During the election campaign the Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) said the funds invested in the transit projects in Punjab with the investment of China could have been used for social spending.