UAE Pressure on Pakistan

Interesting story. The UAE, which has always been seen as an ally of Pakistan on many issues, is trying to get a good deal out of the Pakistanis.

Pakistan has always been energy poor, and about a year ago, it was heralded as a major deal when an agreement was made for the UAE to set up a new refinery in Pakistan. Now, it appears that the UAE is linking the new refinery to getting a controlling stake in Pakistan's largest refinery near Multan. It will be important to watch how the government responds both diplomatically and through economic channels to respond to this obvious threat to Pakistan's already tenuous energy situation. All of Pakistan's other service sectors ie. banking and telecommunications are being heavily invested in by Midle Eastern and Chinese companies. Will Pakistan allow a foreign country to even have controlling stakes in its largest oil refineries? Difficult choices.