ISLAMABAD, Feb 3: Saudi Arabia is likely to invest in gas pipeline and oil refinery projects in Pakistan, says Prime Minister’s Adviser on Finance Dr Salman Shah. Talking to Dawn on Friday, he said a Saudi delegation comprising leading industrialists and businessmen would visit Pakistan in May to identify areas for investment.

The Saudis, he said, were also expected to invest in sectors of privatization, real estate, hotel & tourism, infrastructure, industry, telecommunication and Information Technology.

“There is an oil boom these days which is providing new opportunities to Saudi investors. And after the visit of King Abdullah we see avenues for billions of dollars’ new Saudi investment in Pakistan,” the adviser pointed out.

He said the additional Saudi capital would be flowing into Pakistan owing to increasing political and economic relations between the two countries.

The Saudis, he said, would be offered required incentives to make their investment readily. In this respect he referred to the agreement signed between the two countries on Thursday to avoid double taxation.

Endorsing Mr Shah’s views, Commerce Minister Humayun Akhtar Khan said that the agreement would help attract more Saudi investment in the country.

He said Pakistan was interested in reaching a Free Trade Agreement with the Gulf Cooperation Council. “If we sign that agreement, it will help us attract sizable investment from the Middle East,” Mr Khan said, adding that this would also help remove the existing 20-25 per cent duty charged on Pakistani products in Saudi Arabia.

The volume of trade between the two countries, he said, was expected to go up after the visit of King Abdullah. Currently, the two-way trade is worth about $4 billion, including the purchase of Saudi oil by Pakistan.