Pakistan and China have been doing business together for a long time. Over the years, China and Pakistan have had a healthy relationship which has provided mutual benefit for both countries. In recent news, a whopping $1.5 Billion investment has been signed by Pakistan and China for the development of the Petroleum Sector.
The Memorandum of Understanding was signed at Beijing by China and Pakistan that was worth $1.5 Billion. The MoU was signed between the United Energy Group of China and Pakistan Refinery Limited.
Benefits of MoU Between Pakistan and China
This MoU is set to have a major impact on Pakistan’s Petroleum Sector and is set to boost our production supplies. According to sources, this MoU can boost the production capacity of the refinery. The existing production is 250,000 metric tons. This is said to increase to an astonishing 1.6 million metric tons.
Moreover, the production capacity of High-Speed Diesel is also said to boost by a great margin. The existing HSD production is 0.6 million metric tons to an astonishing 2 million metric tons. This boost in production capacity is going to prove very advantageous for Pakistan. Sources suggest that by this MoU Pakistan can reach its increasing requirements of petrol and HSD accordingly. This new production capacity may even urge the government to reduce fuel prices. Check the latest fuel prices here “Latest Petrol Prices in Pakistan – October 16, 2023.”
China has been like a brother to Pakistan for a long time. The relationship between Pakistan and China continues to grow in recent times. This MoU is another step for the betterment of Pak China relationship.