Gwadar
A general view of Gwadar port in Gwadar, Pakistan October 4, 2017. Picture taken October 4, 2017. REUTERS/Drazen Jorgic REUTERS/Drazen Jorgic

Saudi Arabia plans to set up an oil refinery worth $10 billion in Pakistan's deepwater port of Gwadar, the Saudi energy minister said on January 12 while speaking at the Indian Ocean port that is being developed with the help of China.

Pakistan wants to attract investment and other financial support to tackle a soaring current account deficit caused partly by rising oil prices. Last year, Saudi Arabia offered Pakistan a $6 billion package that included help to finance crude imports.

"Saudi Arabia wants to make Pakistan's economic development stable through establishing an oil refinery and partnership with Pakistan in the China Pakistan Economic Corridor," Saudi Energy Khalid al-Falih told reporters in Gwadar.

He said Crown Prince Mohammad bin Salman would visit Pakistan in February to sign the agreement. The minister added that Saudi Arabia would also invest in other sectors.

gwadar port pakistan
In this photograph taken on October 4, 2017, a Pakistani army soldier stands guard at Gwadar port. Remote and impoverished, Pakistan's Gwadar port at first glance seems an unlikely crown jewel in a multi-billion dollar development project with China aimed at constructing a 21st century Silk Road. Situated on a barren peninsula in the Arabian Sea, Gwadar, or the 'gate of the wind', owes its fortuitous selection as Pakistan's next economic hub to its strategic location near the Strait of Hormuz.AMELIE HERENSTEIN/AFP/Getty Images

Beijing has pledged $60 billion as part of the China Pakistan Economic Corridor (CPEC) that involves building power stations, major highways, new and upgraded railways and higher capacity ports, to help turn Pakistan into a major overland route linking western China to the world.

"With setting up of an oil refinery in Gwadar, Saudi Arabia will become an important partner in CPEC," Pakistan Petroleum Minister Ghulam Sarwar Khan said.

The Saudi news agency SPA earlier reported that Falih met Pakistan's petroleum minister and Maritime Affairs Minister Ali Zaidi in Gwadar to discuss cooperation in refining, petrochemicals, mining and renewable energy.

It said Falih would finalise arrangements ahead of signing memorandums of understanding.

Since the government of Prime Minister Imran Khan came to power in August, Pakistan has secured economic assistance packages from Saudi Arabia, the United Arab Emirates and China.

In November, Pakistan extended talks with the International Monetary Fund as it seeks its 13th bailout since the late 1980s to deal with a looming balance of payments crisis.

The Pakistani prime minister's office had said on Thursday that Islamabad expected to sign investment agreements with Saudi Arabia and the UAE in the coming weeks.