LAHORE: The Punjab Board of Investment and Trade (PBIT) on Friday signed a memorandum of understanding with Grace Refinery, an international petrochemicals company, for establishing an oil refinery with $5 billion investment near Kot Addu.

PBIT CEO Amena Cheema and Grace Refinery CEO Uzma Bashir signed the MoU on behalf of their respective organisations at the PBIT head-office.

Ms Bashir, speaking to reporters, said her company was going to introduce the latest Euro 6 standard oil refinery technology in Pakistan that would reduce carbon emissions from fuels.

She said the refinery, with 220,000 barrels per stream day (bpsd) capacity, would substantially substitute oil imports in the country and generate around 50,000 to 70,000 direct and indirect employment opportunities in South Punjab.

She added the project would take three to five years to complete but the company was trying to channelise the investment during the present government’s regime.

Responding to a question, she said Pakistan’s refining production was around 800,000 barrels a day, but the existing refineries were catering only up to 350,000 barrels a day while rest of the refined oil was imported to Pakistan. She added her refinery would help meet the shortage.

Ms Cheema said the MoU was a part of an ambitious venture that would have a positive impact on both the economy and local population.

Under the MoU, PBIT would act as one window facilitator for the Grace Refinery for fast-track facilitation and necessary support for early commissioning of the project, adding the board would also help the foreign company in acquisition of necessary licenses and land for their market entry.

The delegation of Grace Refinery was led by its Chairman S.M. Ghaus and Project Director Shahzad Akhtar and others.

Published in Dawn, July 30th, 2016