ISLAMABAD: China’s Shandong Group is planning large-scale investments in Pakistan’s energy sector, signaling renewed confidence in the country’s investment environment and efforts to strengthen bilateral economic cooperation.
The group expressed its plan during a meeting between Pakistan’s Petroleum Minister Ali Pervaiz Malik and Shandong Xinxu Group Chairman Hou Jianxin on Thursday in Islamabad to discuss expanding cooperation and potential investment in Pakistan’s energy sector, the petroleum ministry said.
According to a statement issued by the Petroleum Division, Shandong Xinxu Chairman Hou said the company was keen to invest across Pakistan’s energy value chain and proposed forging a long-term strategic partnership with the country.
The company, which specialises in upstream oil and gas operations, expressed interest in helping boost Pakistan’s hydrocarbon production through field optimisation, drilling services, and production enhancement initiatives.
Pakistan🇵🇰 and China 🇨🇳 are set to deepen cooperation in the energy sector.
Federal Minister for Petroleum Ali Pervaiz Malik met Mr. Hou Jianxin, Chairman of Shandong Xinxu Group Corporation, which expressed strong interest in investing across Pakistan’s energy value chain. pic.twitter.com/vP46GGVW7d— Petroleum Division, Ministry of Energy (@Official_PetDiv) July 2, 2026
Shandong Xinxu also proposed upgrading Pakistan’s refineries, including the installation of a fluid catalytic cracking unit to convert furnace oil into higher-value petroleum products.
In addition, Hou said the company was exploring the establishment of an energy equipment manufacturing facility in Pakistan to meet domestic demand while serving export markets across the Middle East.
The proposals also include cooperation in offshore oil exploration and development, lead mining, the establishment of a sulphur processing plant, and the development of integrated energy cities along Pakistan’s coastline featuring LNG infrastructure, petroleum storage facilities, and petrochemical industries.
Petroleum Minister Ali Pervaiz Malik said the government was undertaking reforms in the energy sector to strengthen energy security, attract foreign investment, and promote value addition. He welcomed Shandong Xinxu’s interest in Pakistan and assured the company of the government’s full support for commercially viable investment projects.
The minister also directed the Petroleum Division to appoint focal persons to coordinate with the company and ensure timely follow-up on the proposed initiatives, the statement added.
