(Karachi) Saudi Arabia plans to set up a $10 billion oil refinery in Gwadar port by year end, Arab News reported on Monday.

Director General of Gwadar Development Authority (GDA) Shahzeb Khan Kakar said, “The planning for the mega oil city which will host an Aramco refinery and petrochemical complex is in progress, and we will take six to seven months to complete the masterplan.”

He added that fisheries, an oil refinery, petrochemical complexes, a shipyard, the tourism industry, and most importantly the operations of Gwadar port, will all generate huge incomes and increase per capita income. “This can be achieved by providing electricity, protection and a sound management system.”

The proposed mega oil city will be developed on 88,000 acres of land in the Gwadar district of the southwestern Balochistan province to refine and process petroleum products mainly imported from the Gulf region, for local and regional consumption.

Saudi Energy Khalid al-Falih said that 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.

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.

Speaking on the matter, Petroleum Minister Ghulam Sarwar Khan said: "With setting up of an oil refinery in Gwadar, Saudi Arabia will become an important partner in CPEC."

China will provide $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.