Saudi prince likely to sign $10bn MoUs during upcoming visit
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ISLAMABAD: Pakistan and Saudi Arabia are expected to ink three major memorandum of understanding (MoUs) amounting to over $10 billion during the upcoming visit of Saudi Prince Mohammed bin Salman (MBS) to the country.
“Three mega government-to-government MoUs will be signed and their total volume will be in double digit billion dollars,” Board of Investment (BoI) Chairman Haroon Sharif told Dawn on Monday.
He said the three MOUs will be signed in the fields of oil refining, liquefied natural gas (LNG) and mineral development.
Prince MBS is paying his first two-day visit to Pakistan, most likely, on Feb 16 on the invitation of Prime Minister Imran Khan.
Besides the MoUs, other business agreements are also likely to be signed between businessmen and industrialist of the two sides. “A group of top 40 Saudi businessmen is accompanying Prince Mohammed. The delegation will interact with the local business community. It is expected that some other private level agreements will also be inked during the visit,” the BoI chief said.
Talking about an oil refinery that Saudi Arabia will set up at Gwadar, Mr Sharif said the facility will be established at a cost of $8 billion. “Besides foreign investment, it will also provide job opportunities to the locals of the port city. If they [Saudis] also establish a petrochemical complex along with the refinery, it will require an additional investment of billions of dollars,” he added.
The BoI chief said the Saudi government was keen to install an oil refinery at Gwadar and further urged the preparation of a feasibility report in this regard.
Responding to a query regarding China’s reaction over Saudis investment in Gwadar, Mr Sharif said the former had no objection over the latter’s plan to establish an oil refinery. “In fact the area where Saudis will install the refinery will exactly be determined after feasibility study. However, it will be far away from the China-Pakistan Economic Corridor (CPEC),” he claimed.
Responding to a question as to why Saudi Arabia has suddenly come up with huge investment plans in Pakistan, the board’s chairman said, “The leadership of Prime Minister Imran Khan and his commitment of ensuring transparency in Pakistan are the reasons behind much ambitious foreign investment in the country.”
Published in Dawn, February 12th, 2019
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Comments (87) Closed
Feb 12, 2019 08:20am
So now it’s not an agreement, just an MOU..!!
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Feb 12, 2019 08:20am
We can’t run PIA , railways , already shutdown steel mills and post office is in wretched state along with almost all of govt. run institutes.
How can one expect anything better this time around?
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Feb 12, 2019 08:24am
Why is Chinese NOC required for a Saudi Project ??
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Feb 12, 2019 08:28am
Good news for both Pakistan and Saudi Arabia - well done PM Imran Khan restoring confidence. All this is because of your honesty, dedication and bold decisions against corruption and corrupt mafia, who lotted tax payers money for over 30 years or so.
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Feb 12, 2019 08:36am
Mineral development. seems to be the buzz word.
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Feb 12, 2019 09:12am
MoU are non-binding !!!!!
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Feb 12, 2019 09:12am
Just MOUs. Don't keep your hopes high. Pakistanis need to invest in themselves, no one will come to you, you need to work hard and pull yourselves out of this mess. Then others will join you!
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Feb 12, 2019 09:13am
@Moiz, to most people ‘agreement’ and ‘MoU’ are the same. Unfortunately.
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Feb 12, 2019 09:27am
@Moiz, "So now it’s not an agreement, just an MOU..!!"
Remember MoU is NOT an enforceable contract.
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Feb 12, 2019 09:33am
A record number of MOUs were signed by PPP with China.
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Feb 12, 2019 09:37am
He is looking nukes. Sell it and cash on it. There us nothing else for you to sell.
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Feb 12, 2019 09:39am
Other website predictions are $12 Billion. What is the exact figure?
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Feb 12, 2019 09:41am
Quite a big revenue? When the projects are finally made, tons of jobs for Pakistanis. Hope there’s a fair share of employment for all.
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Feb 12, 2019 10:18am
MoU as in what PCB signed with BCCI and then tried to enforce it as a binding contract?
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Feb 12, 2019 10:22am
Saudi investment in the border area with Iran, i wonder what impact it would make on our relation with Iran. don't know about the authenticity of the news, but they say insurgents funded by saudis are active in the iranian Balochistan
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Feb 12, 2019 10:34am
Now everyone knows the real meaning of MoU.
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Feb 12, 2019 10:42am
Has any real agreement been signed with any country during the last few months despite so many claims. All we heard about MoUs
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Feb 12, 2019 11:01am
Saudi Arabia had to squeeze all their rich in the prison in the Ritz to keep its economy afloat. Does Pakistan really think Saudi Arabia and MBS have $10B to spare?
Saudi Arabia has learnt from BCCI and know the value of the MoU. MBS will get everything he asks from Pakistan for Yemen for nothing. Imran Khan, PTI and Pakistan will rejoice in ancitipation of the $10B windall.
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Feb 12, 2019 11:27am
Useless MoUs while he is not welcomed anywhere in the world.
When will we wake up?
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Feb 12, 2019 11:30am
@Omar, rome wasnt.built.in a day, sir.
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Feb 12, 2019 11:38am
@jaredlee007, the outlook is improving, exports went up, imports dropped.
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Feb 12, 2019 11:51am
Let's see if anything substantial comes out of it other than rhetoric and political posturing.
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Feb 12, 2019 11:55am
Good news for Pakistan and the whole region. This is how development starts when the leader is honest. This will also give better leverage to negotiate with China on a more favorable terms, which will help bring more jobs and industries.
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Feb 12, 2019 11:58am
Please all of you. It is a norm to sign MOUs before all major investments, while a on going feasbility study is completed. This was the case with CPEC. It happens all over the world. Once all the requirements are in place with no objections or any restrictions a final decision will be made.
Currently these talks and negotiation stand in the final stage.
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Feb 12, 2019 11:59am
Reading the news from across the border, its good see IK putting in honest efforts for the upliftment of the country. Hope he is successful in lifting up the standard of living of a vast number of his citizens
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Feb 12, 2019 12:12pm
MBS will be visiting India immediately after Pakistan trip to inaugurate $44 billion refinery in India.
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Feb 12, 2019 12:19pm
@Gaurav, It is not like the 72 billion USD signed by UAE to invest in India with signing of MOU's, nothing invested...it is more like agreements.
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Feb 12, 2019 12:19pm
This unprecedented foreign investment will bode well to help bolster Pakistan’s economy and encourage other countries that Pakistan is a great place to invest.
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Feb 12, 2019 12:25pm
An MoU is only an MoU ....!
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Feb 12, 2019 12:26pm
Mr Omar, I am an overseas Pakistani. I know friends here who availed Pakistan post office service in Australia. We are rising again.
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Feb 12, 2019 12:53pm
Good step. Building new oil refineries will cut down gas prices and enhance energy security. Hope MoU is followed by Agreement and execution. Else, it will be a piece of paper that was used for Photo Ops.
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Feb 12, 2019 01:06pm
if imran khan had not done dharna politics pakistan would have been in a far better state now
he could have opposed but let govt functioned, kept an eye on corruption, but he paralysed the govt
now pakistan is suffereing with BOP ect
this is MOU will talk when actual agreement is signed and work starts
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Feb 12, 2019 01:10pm
Saudis are going to run out of oil by the time the refineries are functional in Gawader.
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Feb 12, 2019 01:14pm
hope its not similar to the MOU that PCB signed with the BCCI
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Feb 12, 2019 01:15pm
I hope after getting defeated by BCCI Pakistan will now know the difference between MOU and legally binding aggrement.
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Feb 12, 2019 01:16pm
Those $10 Billions will come with lots of strings attached, no doubt.
There is no such thing as a free lunch. A price will be extracted from Pakistan for this investment, I bet.
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Feb 12, 2019 01:34pm
I hope pakistanis have learnt the lesson of the value of MOUs from PCB loss versus BCCI at the ICC English Court
MOUs are not worth the paper they are printed on -- they are NOT contracts, and they are NOT binding.
It will just be yet another wasteful photo opportunity.
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Feb 12, 2019 01:36pm
Pakistan is on a move.
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Feb 12, 2019 01:54pm
Saudis signed a 44 billion dollar investment deal with India for the establishment of oil refining in Western India. 10 billion dollars do not seems much compared to that. But every investment is a welcoming move.
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Feb 12, 2019 01:54pm
One has to be carefull with foreign investors. Otherwise it will turn into economy colonisation!
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Feb 12, 2019 02:08pm
Its time the Govt taxed Film stars, Sports persons, Industrialists and top class professions which are revenue spinners with a bit of high end taxes... Fine Saudi bail out is a temporary one, we need to fix Economy on the long run...
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Feb 12, 2019 02:09pm
high hopes for a living. Didn't know how but I always had a feeling
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Feb 12, 2019 02:13pm
I think the Saudi Prince needs Pakistani men for his Harem
Anyway I will sign a worthless MOU too except mine is $100Billion Dollahs. Pakistan Zindabad !!!!
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Feb 12, 2019 02:20pm
PCB signed an MOU with BCCI too...
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Feb 12, 2019 02:26pm
@TIME: You must know China is in control of everything.
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Feb 12, 2019 02:30pm
@Moiz, yes it’s MOU, they need to be confident that the old corrupt crew are not likely to get back.
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Feb 12, 2019 02:33pm
Let us sign MOU with all countries to sign atleast 20 MOUs per year
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Feb 12, 2019 02:36pm
its going to take him forever to make 10 billion signatures
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Feb 12, 2019 02:44pm
All these developments are because of Iman Khan the Prime Minister of the beautiful country of beautiful people of Pakistan. Why only USD 10 billion from the Saudis, many countries are q-ing up to investment in the country knowing well that soon the country will become No.2 world economy.
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Feb 12, 2019 02:44pm
Last time when Pakistan signed mou with India they had to face lot of humiliation, hope they will be catious this time around!!!
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Feb 12, 2019 02:56pm
If it is MOU then make it $100.00 Billion, Eye catching Figures
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Feb 12, 2019 03:29pm
While these initiatives hold prospects for future development, we still need to transform our government institutions into efficient entities utilizing currently available infrastructure and resources.
Imagine each and every individual in the society corrects himself/herself to an efficient and honest one like the parts of an intricate mechanical watch moving in their own domain yet coordinating and impacting the whole watch. It doesn't need billions; all it needs is self correction.
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Feb 12, 2019 03:29pm
To all those claiming about MOU . MOU is always signed first before the final agreement . Once the MOU is signed , feasibility studies and financial closure etc are concluded , laying the strong foundation for the agreement .
MBS wants pie of gawadar. This geo political strategically important area , if US cant come , US will ensure presence through its allies Investment.
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Feb 12, 2019 03:35pm
@TIME: What is the big surprise here? It is required. Period.
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Feb 12, 2019 05:41pm
This guy is a murderer and do we really need to borrow money from him ?
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Feb 12, 2019 05:43pm
Well Well Well!
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Feb 12, 2019 05:52pm
This is PMIK's googly to CPEC!!
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Feb 12, 2019 06:09pm
What an investment?! When the world is moving away fro
Oil and gas to renewable energy, in the era of electric cars, Pakistan is happy to attract investment in building a oil refinery, which can only be used to refine Saudi Oil and you have to buy oil from Saudifor 25 years plus return the invested money to Saudi. Just like CPEC
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Feb 12, 2019 06:12pm
He will sign MOU only and what about demands they send through Raheel Sharif?
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Feb 12, 2019 06:14pm
First, get rid of corruption which is widespread and in your party, then change will happen. Signing MOU's is just useless when the poor and middle class doesn't get any benefits.
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Feb 12, 2019 06:33pm
Wow the negative comments suggest the commentators want this to fail!! I for one am optimistic, regardless if the government is PTI, PPP, PMLN or Military Run. I applaud what is good for Pakistan. Cheap political point scoring is second.
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Feb 12, 2019 07:00pm
I have a feeling that we will soon start hearing "do more" from Saudi in times to come.
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Feb 12, 2019 07:17pm
MOU is not an agreement.
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Feb 12, 2019 07:29pm
No matter what he signs; will average Pakistani will see any change in his or her life?
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Feb 12, 2019 07:29pm
@Moiz, an MOU is an agreement based on conditions being met, which is a fair request.
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Feb 12, 2019 07:31pm
The folks at PML-N are anguishing at not being able to get their beaks wet. These types of investments would never have come to Pakistan under the corrupt regimes that ensure their own 'commissions'.
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Feb 12, 2019 08:06pm
@TIME, because China is loaning us money and till way payback the loan CPEC belongs to them.
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Feb 12, 2019 08:07pm
Saudi Arabia and UAE had promised and then practically executed support of total USD.12 bollion within last 3 months. It should be enough to satisfy those who doubt that it will be only MOU.
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Feb 12, 2019 08:09pm
@ZAK, suddenly you are posting something that makes sense. What happened?
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Feb 12, 2019 08:31pm
@Moiz, Governments usually only sign MOUs. Many of the trade treaties around the world are MOUs. MOUs are preferred during international trade so as to avoid the various international laws. Also, since Saudi Arabia is a kingdom, they will only sign MOUs. MOUs are considered a formal gentlemen's agreement. Just because some counties, like India, go back on their word by saying that they did not sign any legally binding agreement (PCB vs BCCI) it does not make them ineffective.
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Feb 12, 2019 08:41pm
They signed $44billion contract with India and only MoU’s with Pakistan ?
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Feb 12, 2019 09:21pm
@RAVEENDRA NATH, sarcasm is relevant here.
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Feb 12, 2019 09:33pm
@fairplay, True Rome wasnt, but this ain't Rome.
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Feb 12, 2019 09:52pm
@Moiz, absolutely correct. MOUs means nothing
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Feb 13, 2019 12:07am
100s of such MoUs being signed in past. No use.
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Feb 13, 2019 01:57am
These Saudi are comming so many time , I think main reason is to Free Nawaz . Specially the Prince is 1st visitng India.
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Feb 13, 2019 02:38am
@Pervez, because he is not real Zak. Hopefully it makes sense now :)
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Feb 13, 2019 06:14am
@Gaurav, it's their money and they have to determine the long term return on their investment, the refinery is not just for Pakistan but primarily for the Chinese market. if the US hadn't sanctioned Iran then an oil and gas pipeline would have been connected to China via Pakistan and in the long run possibly to india, as this is not going through in the near future the saudis may be considering hedging their bets with China as the possible superpower of the future.
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Feb 13, 2019 06:25am
@Shaibaaz, look to how property is bought or sold, my just making it simpler yet secure for both seller and buyer, with diffent tax rates ( nothing excessive) , it would create a market for real estate agents, conveyancing and allow people to move far more easily and effectively. the government could see far more income. also for purposes of health, there could be a form of health insurance for every adult to pay into,
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Feb 13, 2019 06:29am
Many of these MOUs are signed but not adhered to. Do Saudis have that much money left in their kitty?
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Feb 13, 2019 06:40am
He then going to india, below are stats from Indian press
The bilateral trade was USD 27.48 billion during the last financial year 2017-18, making Saudi Arabia India's fourth largest trading partner.
Saudi Arabia contributes significantly to India's energy security needs by supplying about 20 per cent of crude requirements of the country.
Recently, Saudi ARAMCO in partnership with ADNOC of the UAE entered into a Joint Venture for USD 44-billion worth Ratnagiri Refinery and Petro-Chemical project Ltd.
The Kingdom of Saudi Arabia also facilitates Hajj pilgrimage to over 1,75,000 Indians every year.
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Feb 13, 2019 07:03am
@Prateik, from what you say, it seems this is just a sideshow to the main event.
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Feb 13, 2019 07:18am
If $60 billion CPEC-investment did not stabilize Pakistan's economy what will this $10 billion investment do?
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Feb 13, 2019 07:51am
Majority MOU's rarely become reality.
He is coming to India next where atleast $44 billion of investment (not MOU) in Ratnagiri refinery alone will happen for sure. Apart from this, many other agreements are in the line.
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Feb 13, 2019 05:26pm
Brother comming to see his brothers. Wellcome.
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Feb 13, 2019 05:38pm
It comes with price tag
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Feb 14, 2019 12:28am
What percent of MOU turned into a signed agreement??
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