PAKISTAN STRATEGIC LEAP INTO 2024 WITH DIPLOMATIC, ECONOMIC AND DEFENSE TRIUMPHS

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By: Maria Mansab

The dawn of 2024 marks a momentous period for Pakistan. As the year unfolds, Pakistan has participated in the Riyadh mineral forum, forging crucial alliances with KSA in pursuit of the Reko Diq investment deal. Simultaneously, Pakistan hosted the 4th Pakistan-Africa Trade Development Conference (PATDC) and Single Country Exhibition (SCE) in Cairo, strengthening economic ties with Egypt. Additionally, a trilateral meeting with key partners in Saudi Arabia and Turkey underscored not only the country’s diplomatic prowess but also the potential role of military leadership in securing potential achievements in defense and technology.

Pakistan and Saudi Arabia have advanced toward a prospective investment agreement for the Reko Diq copper and gold project at the Riyadh mineral forum, with the military leadership and SIFC playing a crucial role.

Saudi Arabia is seeking to attract SR63.7 billion ($170 billion) worth of investment in the mining industry by 2030 to help the country capitalize on its wealth of mineral resources, the total value of which is estimated to exceed SR4.88 trillion ($1.3 trillion). Notably, Pakistan stands as a prospective mineral investment destination for Saudi Arabia.

In 2022, the Geological Survey of Pakistan (GSP) and Ma’aden, a Saudi-owned mining corporation, agreed to conduct a survey to identify mineral resources. Barrick Gold Corp., which owns a 50% share of the Reko Diq mine, considers it one of the world’s greatest unexplored copper-gold regions.

Foreign direct investment is a prerequisite for this agreement; Saudi Arabia and other traditional Middle Eastern allies could potentially secure approximately $70 billion in investments across multiple sectors. The investment that KSA intends to undertake will be regarded as a strategic investment.

To foster investment activities and create a favorable environment, Pakistan established SIFC in collaboration with military establishments. This partnership is dedicated to facilitating and expediting the investment process, with particular emphasis on the following industries: agriculture, mining, energy, information technology, and defense.

This collaboration also aims to resolve issues swiftly and provide security, making it an instrumental factor in creating an environment conducive to investors. A prominent example is SIFC’s work with military institutions to reach an agreement with K. Electric and settle all concerns to the benefit of its principal owner, Saudi Arabia’s Aljomaih Power Limited Company. One of the Kingdom’s stipulations was that Pakistan first facilitate Aljomaih Power Limited of Saudi Arabia by addressing all K. Electric concerns to attract further investment in Pakistan’s mining, refinery, and agriculture sectors. The military leadership was critical to maintaining physical security for investors.

Meanwhile, Pakistan has also strengthened economic ties with Egypt by hosting the 4th Pakistan-Africa Trade Development Conference (PATDC) and Single Country Exhibition (SCE) in Cairo.  This demonstrates Pakistan’s commitment to strengthening commercial ties with Egypt.

More than 200 Pakistani businesses from diverse sectors, including textiles, engineering goods, food and agriculture, and services, attended the conference to discuss and form business alliances. Furthermore, 150+ renowned businessmen and chamber representatives from the Middle East and North Africa (MENA) area gathered in Cairo, boosting the chances for commercial connections with Pakistan.

This endeavor is under the ‘Look Africa’ policy of Pakistan, which has previously generated substantial economic advantages in Johannesburg, Lagos, and Nairobi. The year 2024 will be devoted to enhancing relations with the MENA region, with Cairo serving as the designated location. The purpose of the event is to facilitate trade expansion, joint venture formation, and cooperative endeavors between Pakistan and MENA nations.

In a parallel development, at the second meeting of the Trilateral Defense Collaboration, Pakistan, Saudi Arabia, and Turkey addressed prospective collaboration in defense equipment technology, including research and development. The military leadership played a crucial role in reaffirming the importance of “combining the intellectual, technical, financial, and human resources of the three friendly nations towards the achievement of shared objectives and self-sufficiency in the defense domain.” The strategic purpose of broadening the scope of trilateral cooperation, as well as the necessity to accelerate collaboration toward common goals, highlighted the significance of military institutions.

They also conveyed a robust shared aspiration to expand defense collaboration in all areas and to attain self-reliance in defense manufacturing. The forum also emphasized the significance of investigating additional channels for defense cooperation and expediting the rate of their combined endeavors.

The defense sector is an integral part of the SIFC, with military leadership playing a crucial role in its development, supported by worldwide investments. This is particularly important as the globe is undergoing rapid changes. 

Significantly, during a two-day visit to the Kingdom of Bahrain, General Syed Asim Munir, Chief of Army Staff (COAS), held critical talks with Bahraini authorities, emphasizing the importance of military leadership in national development. During these meetings, discussions focused on issues of mutual importance, such as Pakistan and Bahrain’s military and security cooperation. The dignitaries welcomed and applauded the Pakistan Army’s successes in the war against terrorism, as well as its continuous efforts to promote regional peace and stability.

The role of military institutions emerges as a linchpin in these endeavors. These key events highlight Pakistan’s developing bilateral engagement with MENA governments and indicate their commitment to deepening bilateral relationships in defense and other areas, confronting contemporary issues, and collaborating on technological developments. These coordinated efforts demonstrate Pakistan’s will to carve out a strong and diverse role on the world stage at the start of this bright year.

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