News Desk
Islamabad: Pakistani and Saudi officials have underscored the growing cooperation between the private sectors of both countries, particularly considering increasing Saudi investment in Pakistan.
According to a press release, this was discussed during a meeting between Pakistan’s former minister for investment, Muhammad Azfar Ahsan, and his Saudi counterpart, Khalid bin Abdulaziz Al-Falih.
Mr Ahsan met with Mr Khalid in Islamabad to explore avenues for deeper collaboration. They emphasised the need to empower the private sector to spearhead business-to-business (B2B) partnerships that would solidify productive investments, with Saudi Arabia playing an expanding role in Pakistan’s economic recovery.
Their conversation focused on building a robust ecosystem to enhance bilateral ties, addressing mutual challenges, and charting a strategic roadmap for the future. A project centred on food security emerged as a key area for collaboration, aimed at ensuring stability and promoting prosperity in both nations.
The officials also stressed the importance of maintaining consistent partnerships to navigate the complexities of geopolitical dynamics and enhance regional stability.
A visit to Riyadh by leading Pakistani business houses was planned, where they will engage in B2B meetings with their Saudi counterparts to explore joint ventures and attract further Saudi investments into Pakistan.
Both sides expressed optimism about the future of their partnership, emphasizing the strength of the Saudi-Pakistani relationship and their shared goal of unlocking untapped potential for sustainable economic growth and mutual prosperity.
Economic cooperation and investments
Saudi Arabia has been a major investor in Pakistan investing in various sectors such as energy, infrastructure, and agriculture. Saudi Arabia pledged $3 billion in aid and loans to Pakistan, with $1.5 billion deposited in Pakistan’s central bank.
Saudi Arabia has shown keen interest in investing in various sectors notably nearly 1 billion dollars in the Reko Diq Mining Project. The construction of one of the largest oil refineries in Pakistan is underway, aimed at boosting local energy production and reducing dependency on imported oil.
Trade balance
According to Pakistan and Gulf Economist magazine, there has been a positive shift in trade dynamics between the two countries. According to recent data, during the first seven months of the fiscal year 2023-24 (July-January), Pakistan’s exports to Saudi Arabia surged by 27%, totalling $394 million, compared to $311 million in the same period the previous year. Imports from Saudi Arabia increased by 10%, amounting to $2.730 billion.