International Petroleum Investment Co, owned by the government of Abu Dhabi in the United Arab Emirates, has received approval from Pakistan's government to build a 5 billion dollar oil refinery at Hub in the southwestern province of Balochistan.
The refinery, which will be Pakistan's biggest, have the capacity to process 300,000 barrels of oil a day, Ashfaque Hasan Khan, an economic adviser to the government said.
The proposed refinery will help Pakistan meet demand for oil products, which is expected to grow 5 per cent annually to reach more than 18 million tons by 2010.
The country has five refineries producing 11.2 million tons of oil products a year.
Pakistan imports about 85 per cent of the oil its uses, half of which arrives as refined products, according to the US Energy Information Administration.
International Petroleum, which will own 75 per cent of the refinery, will start building the processor next year and complete it by 2010, Khan said.
Pak Arab Refinery Co, owned by the Pakistan government, will have a 25 per cent share.