BEIJING, The United Energy Group of China and Pakistan Refinery Limited on Wednesday signed a Memorandum of Understanding (MoU) for a $1.5 billion investment in the petroleum sector.

Caretaker Prime Minister Anwaar-ul-Haq Kakar and Federal Energy Minister Muhammad Ali witnessed the ceremony.

The MoU will help increase the petrol production capacity of the refinery from 250,000 metric tons to 1.6 million metric tons and high speed diesel from 0.6 million metric tons to 2 million metric tons.

The petrol and high speed diesel produced by the refinery will be an alternative to imported, expensive fuel.

The investment is expected to create jobs and boost the Pakistani economy. It will also help to reduce Pakistan’s reliance on imported oil.