Pakistan and Saudi Arabia have agreed to strengthen strategic cooperation in oil storage, refinery upgrades, crude oil and liquefied petroleum gas (LPG) procurement, and the minerals sector to promote bilateral economic ties, according to a statement issued by the Petroleum Division.

Pakistan has been planning to boost domestic storage for crude oil and refined products to increase its energy security. With no strategic petroleum reserves, the country has been left exposed to oil supply shocks resulting from the US-Iran war that has choked supplies through the Strait of Hormuz.

“Under this framework, Saudi companies can establish commercial oil reserves in Pakistan without local tax liabilities, offering an opportunity to diversify maritime transit risks associated with the Strait of Hormuz and Bab al-Mandab while facilitating access to Asian markets,” the statement reads.

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