By: Vibhuti Pathak
A three-day visit of a delegation from Saudi led by Saudi Deputy Investment Minister Ibrahim Almubarak in delegation has opened the door to investments in Pakistan’s leading companies. They will be holding business-to-business (B2B) meetings with the target companies in sectors of agriculture, mining, human resources, energy, maritime and chemical. The first wave of investment is a planned £3.75 billion Saudi investment package for Pakistan.
The delegation led by Saudi Deputy Investment Minister Ibrahim Almubarak was welcomed by Commerce Minister Jam Kamal and Petroleum Minister Musadik Malik at the Nur Khan airbase, according to a press release issued by the Ministry of Commerce.
The government aims to court foreign investors to boost its exports in collaboration with Saudi companies. Apart from the mainstream sectors, IT, religious tourism, telecom, aviation, construction, water and power generation as mentioned in the press release.
According to the commerce minister, the purpose of the visit is to enhance trade ties between investors from both countries and identify trade and investment opportunities across various sectors of the national economy.
He said the ministry picked several Pakistani companies for business-to-business (B2B) meetings with the Saudi investors and disclosed that “leading” Pakistani companies would collaborate with at least 30 Saudi companies across different sectors. During the meetings, local companies will present their business and investment proposals to their Saudi counterparts.
During a recent visit, Prime Minister Shehbaz Sharif held a meeting with Saudi Crown Prince Mohammed bin Salman, as the latter agreed to expedite the first wave of a planned £3.75 billion Saudi investment package for Pakistan.
The information minister had termed the premier’s visit “highly successful” and said that major developments would take place within the next few months because of the PM’s trip to Riyadh. “Within a short span of just one month, the prime minister held two meetings with the Saudi crown prince which has a historic significance for the two brotherly countries,” the minister had said.
The recent Pakistan-Saudi relations date back to 2023 when ex-caretaker Prime Minister Anwaarul Haq Kakar visited Saudi Arabia where he claimed that the Saudi government would invest up to £18.75 billion in Pakistan over the “next two to five years” across various sectors.
The report cited a commerce ministry official saying that Saudi Arabia was an oil-based economy with strong government controls over major economic activities; however, it was now undergoing a transformation to reduce oil dependence, diversify income sources, and enhance competitiveness under the Vision 2030.
During the sidelines of the World Economic Forum conference, the Prime Minister of Pakistan engaged in discussions regarding bilateral investment and economic partnerships with the Crown Prince of Saudi Arabia and various Saudi ministers, including those responsible for finance, industries, investment, energy, climate, economy, and planning. Also present were the advisers of the Saudi-Pakistan Supreme Coordination Council, along with the presidents of the Saudi central bank and the Islamic Development Bank.
This marked Sharif’s second meeting with the crown prince within a month, following their previous encounter during Sharif’s visit to the Kingdom on April 6-8. Notably, the Saudi foreign minister visited Pakistan last month, during which Pakistan presented projects valued at least £14.9 billion to Riyadh.
Pakistan and Saudi Arabia maintain robust trade, defense, and cultural relations. With over 2.7 million Pakistani expatriates residing in the Kingdom, Saudi Arabia serves as a primary source of remittances to Pakistan, aiding its economic challenges.
Currently, the major exports of the Kingdom included mineral fuels, mineral oils, plastics and organic chemicals, whereas it was importing machinery, vehicles, and agricultural products. The official said that during the first half of the current financial year, bilateral trade between Pakistan and Saudi Arabia was recorded at over £196.94 million, with Pakistan’s share of exports at £196.94 million and Saudi exports at £1.664 billion.
He said Pakistan’s major exports to Saudi Arabia included rice, meat of bovine animals, fruits and vegetables, and tents and camping goods.
