Pakistan to partner with Saudi Arabia, Kuwait, Qatar on oil storage scheme

Pakistan is set to collaborate with Saudi Arabia, Kuwait, and Qatar to establish an oil storage scheme aimed at enhancing its energy security. The initiative comes in response to the vulnerabilities exposed by the ongoing US-Iran conflict, which has disrupted oil supplies through the Strait of Hormuz. Petroleum Minister Ali Pervaiz Malik announced that this partnership will allow these Gulf nations to store oil in Pakistan, ensuring a stable supply for both local and international markets.

The scheme is designed to provide Pakistan with access to crucial oil resources during times of conflict, allowing the country to purchase stored oil as needed. This strategic move is expected to bolster Pakistan's energy reserves without requiring significant upfront investment. The government is currently assessing the financial implications, with estimates suggesting that around $500 million will be necessary for a month’s worth of crude oil storage.

As the plan progresses, the Economic Coordination Committee will review the proposal, with decisions anticipated in the coming weeks. This collaboration not only aims to secure Pakistan's energy needs but also strengthens ties with key Gulf partners, reflecting a broader regional strategy to address energy security challenges.