Pakistan Offers Saudi Arabia Tax-Free Oil Storage Facilities
Pakistan has offered Saudi companies the opportunity to store commercial oil reserves in the country without local tax obligations, in a move aimed at diversifying energy supply routes and reducing reliance on strategic shipping chokepoints such as the Strait of Hormuz and Bab el-Mandeb.
Islamabad: According to Raaz News | Pakistan's Petroleum Minister Ali Pervaiz Malik announced that Saudi companies would be allowed to store commercial oil reserves in Pakistan without incurring local taxes.
The initiative is intended to diversify oil supply routes and minimize transportation risks associated with shipping through the strategically important Strait of Hormuz and Bab el-Mandeb.
Islamabad is also planning to establish a major oil storage and refining complex in Hub, Balochistan province. The facility is expected to accommodate ultra-large oil tankers and strengthen Pakistan's position as a regional hub for oil storage and transportation between the Gulf and South Asia.
Pakistan hopes the proposed initiatives will attract foreign investment, generate additional revenue from shipping activities, and expand the country's role in regional fuel storage and energy trade