Chinese firm to invest $1b in PRL
A Chinese investment corporation has agreed to provide $1 billion to Pakistan Refinery Limited (PRL) for its upgradation project, a move aimed at transforming the refinery's production capacity.
However, the Chinese firm has made it clear that it does not want any government role involved in the deal and expects PRL to repay the amount in dollars without any government control or intervention.
At present, the State Bank of Pakistan (SBP) permits the private sector, including refineries, to retain dollars for investment purposes.
However, the Chinese company has stated that such controls should be eliminated to ensure smooth repayment of the loan. The firm stressed that there should be no obstacles in remitting dollars back to China.
Sources within the Petroleum Division revealed that PRL has assured the Chinese Investment Corporation that it will generate the required dollars through the export of petroleum products, which will then be used to repay the Chinese firm.
Additionally, China Export & Credit Insurance Corporation (SINOSURE), which is a state-funded insurance company established to promote China's foreign trade and economic cooperation, has also insisted on no government interference regarding the provision of dollars.
PRL is currently engaged in an upgradation project aimed at doubling its production capacity from the current 50,000 barrels per day to 100,000 barrels per day.
The refinery has already signed an agreement with China's United Energy Group (UEG) to embark on this significant expansion and modernisation endeavour.
