Pakistan and Saudi Arabia are set to engage in business-to-business discussions as part of the two-day Pakistan Saudi Arabia Investment Conference, held in Islamabad on May 6-7, 2024.
This initiative comes as Pakistan seeks foreign financing to bolster its economy.
A 50-member Saudi delegation led by Ibrahim Al-Mubarak arrived in Pakistan on May 5, comprising some 30 Saudi companies from IT, telecoms, energy, aviation, construction, mining exploration, agriculture and human resource development.
The conference comes amidst close collaboration between Pakistan and Saudi Arabia to enhance bilateral trade and investment agreements.
This effort follows a meeting between Pakistani Prime Minister Shehbaz Sharif and Saudi Crown Prince Mohammed bin Salman last month, where both leaders reaffirmed their commitment to fast-track a previously discussed $5 billion investment package.
Saudi Arabia sees Pakistan as high priority opportunity
Saudi government and companies consider Pakistan a high priority economic, investment and business opportunity, the Kingdom’s Deputy Investment Minister Ibrahim Al-Mubarak said at the conference.
The Saudi official said his country “believes in the economic potential of Pakistan” including its demography, location and natural resources.
Saudi government and companies consider Pakistan a high priority economic, investment and business opportunity. pic.twitter.com/2PzBSt6Exz
— Petroleum Division, Ministry of Energy (@Official_PetDiv) May 6, 2024
He said Pakistan is a major strategic partner for Saudi Arabia. Referring to the “fraternal ties” rooted deep in common faith, culture and shared values, he said “we want to see Pakistan as one of our leading international partners.”
Pakistan set to sign agreements ‘worth billions’ with Saudi Arabia
Prime Minister Shehbaz Sharif announced on Monday that Pakistan and Saudi Arabia are likely to sign “solid agreements worth billions of dollars” soon. The announcement was made during a dinner held in honor of a prominent Saudi business delegation visiting Islamabad, the Pakistani capital.
“Today, B2B (business-to-business) interactions have been most productive,” he said. “That time is coming very fast, when we will, God willing, witness agreements, solid agreements worth billions of dollars. That will set the ball rolling.”
Sharif emphasized his government’s determination to overcome obstacles hindering the rapid attainment of objectives.
He assured, “We are fully resolved and committed to this endeavor.” The Pakistan PM also highlighted the confidence expressed by the Saudi side in Pakistan’s Special Investment Facilitation Council (SIFC), established last year to supervise all foreign investments in the nation.
Finance Minister advocates foreign investment for economic stability
Finance Minister Senator Muhammad Aurangzeb emphasized the critical role of foreign investment in ensuring macroeconomic stability in Pakistan during his address at the Pakistan-Saudi Arabia Investment Forum 2024 in Islamabad.
He highlighted ongoing efforts to develop short, medium, and long-term strategies for economic stability, including structural reforms in the energy sector. Aurangzeb pointed out positive indicators such as agriculture growth, current account surplus, record federal revenue, and decreasing inflation.
He also mentioned the recent successful visit of Prime Minister Shehbaz Sharif to Saudi Arabia, which paved the way for enhanced economic cooperation between the two countries. Aurangzeb noted the importance of privatization, export-led growth, and attracting foreign direct investment (FDI) for economic progress.
Commerce Minister Jam Kamal emphasized the significance of business-to-business relations and economic reforms, while Saudi Minister Ibrahim Al-Mubarak expressed mutual development support between Pakistan and Saudi Arabia, highlighting the importance of Saudi investment in Pakistan’s development.
Federal Minister of Petroleum Musadik Malik emphasized the partnership between Saudi Arabia and Pakistan in each other’s development, underlining the crucial role of Saudi investors and businessmen in Pakistan’s economy.
Pakistan Govt assures Saudi investors of ‘blanket support’
Prime Minister Shehbaz Sharif also assured comprehensive support to Saudi Arabia’s investors, facilitating them and businessmen in swiftly realizing their future projects through joint ventures.
The prime minister reaffirmed that it was not the government’s role to engage in business activities. However, it is responsible for providing policy frameworks, acting as catalysts, and eliminating obstacles to ensure the rapid attainment of economic targets.
Sharif said his government had resolved and was committed to removing all the bureaucratic hurdles and red tape in the way of foreign investment.
Pakistan seeks Saudi investment in IT sector
Pakistan’s Information Technology Minister Shaza Fatima Khawaja, in a meeting with Saudi tech companies who are part of a large delegation, said Pakistan’s technical expertise and Saudi Arabia’s market needs could combine for “valuable” investments in the IT and telecoms sector.
“We are dedicated to offering a stable and supportive framework … We encourage all Saudi companies to explore opportunities for partnerships and joint ventures,” Pakistani news agency APP reported, quoting Khawaja who urged the Saudi delegation to “capitalize on the synergies between Pakistani technical proficiency and the access to the Saudi market, accompanied by the potential for valuable investments.”
Minister of State for IT Shaza Fatima urges Saudi tech companies to explore opportunities in Pakistan
— Ministry of IT & Telecom (@MoitOfficial) May 6, 2024
"We are dedicated to offering a stable and supportive framework. We encourage all Saudi companies to explore opportunities for partnerships and joint ventures (JVs)," @ShazaFK pic.twitter.com/mH916Dbx7o
Pakistan’s biggest IT firm Systems Limited is exploring Saudi investment avenues in Pakistan’s IT sector. Asif Peer, CEO of Systems Limited, engaged in insightful discourse with Ibrahim Al-Mubarak, Deputy Investment Minister of Saudi Arabia. They discussed unlocking new pathways for Saudi investment in Pakistan’s rapidly growing IT industry, potentially catalyzing job creation, skill enhancement, and improving digital infrastructure.
Pakistani Ambassador to Saudi Arabia, Ahmad Farooq, also attended the meeting.
