Pak-Saudi new economic horizon
20 April 2024
Published in: Pakistan Observer
Following Prime Minister Shehbaz Sharif’s two-day visit to Saudi Arabia on April 6, Saudi Foreign Minister Prince Faisal bin Farhan recently arrived in Islamabad with a high-level delegation. Foreign Minister Ishaq Dar and the Federal Cabinet warmly welcomed the distin-guished guests. The swift arrival of the Saudi delegation within a week underscores the deep-seated harmony between the leaders of both countries, reflecting mutual trust, cooperation and a shared commitment to bilateral development. During Prime Minister Shehbaz Sharif’s visit to Saudi Arabia, Crown Prince Muhammad bin Salman held a one-on-one meeting with him. The Saudi investment delegation engaged in consultations regarding next steps and im-plementation strategies.
Saudi Minister for Environment, Water and Agriculture, Engineer Abdul Rahman Abdul Mohsen Al-Fazli, Minister for Industry and Mineral Resources, Bandar Ibrahim Al-Khoroy, Assistant Minister of Investment, Ibrahim Yusuf Al-Mubarak and other distinguished mem-bers included dignitaries from Royal Court and other sectors and senior officials. The visit of Saudi high officials to Pakistan is a clear and bright expression of the importance of this visit. The recent visit of the Saudi delegation to Pakistan shows keen interest of the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and Crown Prince Muhammad bin Salman.
Prior to Prime Minister Shehbaz Sharif’s visit to Saudi Arabia, Chief of Army Staff of Paki-stan, General Syed Asim Munir, also visited Saudi Arabia and is playing an important role in cementing Pakistan-Saudi Arabia relations. The timing of the arrival of the high-level delega-tion of Saudi Arabia to Pakistan is very important. Both the countries have always had very close cooperation and a common point of view at the global and regional levels. The views of both countries on Palestine and Occupied Jammu and Kashmir have been playing key role in the equal voice of the OIC platform. The diplomatic isolation that Pakistan has been sub-jected to during the last few years (2018 – 22) has come to an end.
Saudi Arabia is interested in investing in Pakistan in agriculture, trade, energy, minerals, IT, transport and other sectors. Detailed discussions were held regarding the Saudi investment in Reko Diq project. As a result of this visit, the export capacity of Pakistan will significantly increase. Apart from this, the start of joint projects and new possibilities will be paved. The arrival of the high-level delegation of Saudi Arabia will not only advance the achievement of the objectives of SIFC, but will also lead to more speed and confidence in the already im-proving economic situation of Pakistan. Saudi Arabia will be moving ahead to invest in different projects in Pakistan. Initially the Kingdom has pledged to expedite US $ 5 billion investment. Prince Faisal bin Farhan bin Abdullah arrived in Islamabad to lead a delegation on a two-day visit as part of efforts to boost economic cooperation. Pakistan shared extensive briefings to the delegation on differ-ent potential investment projects. Pakistan has also offered multiple projects worth US $ 32 billion to Saudi delegation in different fields. All of these projects will further strengthen Pakistani economy and help eliminate poverty and joblessness in the country. Saudi invest-ment in mining sector in Balochistan will really change fate of the province. I expect gross development in different mining projects in Balochistan. It will definitely improve GDP of Pakistan.
Foreign Minister Ishaq Dar outlined areas of interest for Saudi investors such as agriculture, mining, information technology and aviation. Prince Faisal bin Farhan looked very impressed with the briefings on multiple investment opportunities. This gave some significant confi-dence to the delegates. Saudi investors will be able to move forward on those projects which they decided to identify as a worthy of investment. I am sure Saudi will be moving ahead side by side Pakistan onward. The Saudi delegation came to follow-up on the understanding reached between Prime Minis-ter Shehbaz Sharif and Saudi Crown Prince Mohammed bin Salman during their recent meet-ing in Makkah to enhance economic cooperation between the two countries.
The Special Investment Facilitation Council (SIFC), a body consisting of Pakistani civilian and military leaders set up to promote investment in Pakistan, briefed the delegates to show-case various sectors for investment. The visit came ahead of Pakistan seeking a 24th bailout from the International Monetary Fund. Pakistan Finance Minister Muhammad Aurangzeb is in Washington to attend the IMF, World Bank spring meetings where he will open formal talks for the new loan programme. Whenever any significant economic activity is designed in Pakistan, terrorists and anti- Paki-stan elements get active and start targeting the foreign investors. To safeguard investment, Pakistan will have to control terrorism by all means.
Cash-strapped Pakistan desperately needs to shore up its dwindling foreign reserves and fight a chronic balance of payment crisis. Whenever Pakistan faces any serious economic crunch Saudi Arabia extends its fullest cooperation to rescue. A new closeness, innovation and warmth is seen in Pakistan’s always reliable and brotherly relations with Saudi Arabia.
