Pakistan and Saudi Arabia Pave the Way for Strategic and Commercial Partnership
ISLAMABAD: Pakistani top leaders, including the prime minister, president, and foreign minister, expressed optimism on Tuesday that the ongoing visit of Saudi Foreign Minister Prince Faisal bin Farhan to Islamabad would elevate the longstanding friendship between the two nations into a strategic and commercial partnership.
Building on Previous Commitments
Prince Faisal’s arrival in Pakistan on Monday marked a significant step towards enhancing bilateral economic cooperation and advancing investment deals previously agreed upon. This visit follows a recent meeting between Crown Prince Mohammed bin Salman and Prime Minister Shehbaz Sharif in Makkah, where the Kingdom reaffirmed its commitment to expedite investments worth $5 billion.
Strong Ties and Mutual Benefits
Pakistan and Saudi Arabia share robust trade, defense, and cultural relations. With over 2.7 million Pakistani expatriates residing in the Kingdom and Saudi Arabia being the top source of remittances to Pakistan, the bonds between the two countries run deep.
Fostering Economic Partnerships
Speaking at a Pakistan-Saudi Arabia Investment Conference in Islamabad, Foreign Minister Ishaq Dar emphasized the goal of transforming fraternal ties into a strategic and economic partnership. The establishment of Pakistan’s Special Investment Facilitation Council last year underscores the commitment to oversee all foreign investments and create a conducive environment for economic growth.
Unlocking Investment Potential
Dar highlighted Pakistan’s agricultural richness, mineral reserves, growing IT sector, and renewable energy opportunities as attractive prospects for foreign investors, especially in agri-tech, food processing, and mining sectors. Projects like the Riko Diq copper and gold project exemplify Pakistan’s commitment to leveraging natural resources for mutual benefit.
Promoting Mutual Prosperity
The Saudi delegation’s visit also aims to boost investment in Pakistan’s underdeveloped copper-gold mining areas, with potential investments of $1 billion in Balochistan province. Pakistan’s vision is to become a hub of economic activity, innovation, and a preferred destination for global investors, particularly from Saudi Arabia.
High-Level Meetings and Invitations
During his visit, Prince Faisal engaged in discussions with Prime Minister Sharif and President Zardari, focusing on strengthening strategic and economic partnerships between the two nations. Prime Minister Sharif extended an invitation to the Saudi crown prince, expressing eagerness for further cooperation in trade and investment.
Push for Investments and Economic Cooperation
The Saudi delegation’s consultations with Pakistani officials aim to advance investment plans in various sectors, including agriculture, trade, energy, IT, and transport. This visit is seen as a crucial step in boosting Pakistan’s export capacity, launching joint ventures, and creating new opportunities for economic growth amidst financial challenges.
**Saudi Arabia Expands Economic Assistance to Pakistan**
In a strategic move, Saudi Arabia is shifting its approach to providing aid to allies, opting for investment deals over direct financial support. This change comes as the last loan deal between the two countries is set to expire this month.
For years, Saudi Arabia has been a crucial lifeline for cash-strapped Pakistan, offering oil on deferred payments and direct grants to stabilize its economy. However, the Kingdom’s finance minister announced a new direction, focusing on mutual investments supported by internal economic reforms.
Prime Minister Imran Khan expressed gratitude for the increased investment from Saudi Arabia, highlighting Pakistan’s efforts to attract foreign investment and create mutually beneficial partnerships. He shared information about the Special Investment Facilitation Council’s initiatives to promote investment and oversee foreign funding.
During a meeting with a Saudi delegation, Khan extended an invitation to the Saudi crown prince to visit Islamabad. The PM’s office eagerly anticipates the potential visit, emphasizing the enthusiasm of the Pakistani people for the crown prince’s arrival.