Pak-Saudi trade relations, the beginning of a new era

Prime Minister Shahbaz Sharif has said that Saudi investors should take advantage of investment opportunities in Pakistan. Through SIFC, Saudi investors will be provided with a barrier-free business friendly environment. He expressed these views while addressing a dinner in honor of a delegation of investors.

Saudi Arabia’s heavy investment in Pakistan will have a positive impact on the country’s economy. United Arab Emirates, Qatar, Kuwait, Bahrain are also ready to invest in Pakistan, due to Saudi Arabia’s investment, investors from America, South Korea, Japan and European countries will also be encouraged to invest in their homeland. .

Foreign investors can earn good profits in Pakistan, the government of Pakistan is taking good steps in this regard. The doors of investment in Pakistan have been opened to the world by forming the Special Investment Facilitation Council. Economic recovery is a challenge for Pakistan, undoubtedly Saudi Arabia can play an excellent role in this regard.

Saudi Arabia has stood by Pakistan in difficult situations. Pakistan supported Saudi Arabia when it was needed, there were many occasions when some powers tried to isolate Saudi Arabia, but Pakistan never came under pressure. Pakistan’s financial difficulties were always recognized by Saudi Arabia. Whatever the government, Saudi Arabia played its role in improving the economy of Pakistan, on various occasions, deposits of five billion dollars were made by Saudi Arabia in Pakistan.

The success of the Saudi delegation’s visit is proof of the arrival of a new and auspicious chapter in Pak-Saudi relations. The current government of Pakistan has stated that fixing the country’s economy and overcoming economic difficulties is one of its top priorities. Pakistan has a wide scope of investment in other sectors including minerals and agriculture, the rate of return can also be very high. Saudi Arabia will soon start investing one billion dollars in Rekodic project in Balochistan. Ricoh has one of the largest gold and copper deposits in the world while proposed investment projects in the agriculture sector are likely to be finalized soon.

In 2021, when Pakistan’s economy was in trouble and its foreign exchange reserves had declined sharply, the Saudi government deposited three billion dollars in the Central Bank of Pakistan as a deposit. The repayable period of these deposits has been extended twice by Saudi Arabia, while Saudi Arabia has also been providing loan oil facility to Pakistan. About 2.7 million Pakistani professionals, skilled and business people are living in Saudi Arabia who are not only contributing to the development of Saudi Arabia but also sending billions of dollars to Pakistan annually. According to official data, the largest share of foreign exchange sent to Pakistan every year comes from Saudi Arabia.

The arrival of a large high-level delegation and investors from the Islamic brotherhood to Pakistan can be said to be the beginning of a new era in the already vibrant relationship between the two countries. There could be a major breakthrough for Pakistan, which would be very helpful in stimulating our stagnant economy. According to the media, Pakistan has offered 25 projects of potential investment worth billions of dollars, including PIA, privatization of airports, mining, Bhasha Dam, Matiari, Moro, promising to address all major concerns of Saudi Arabia. , Rahim Yar Khan and Ghazi Brotha to Faisalabad transmission lines and many other sectors including semiconductor manufacturing. This investment will stabilize the economy and create new employment opportunities.

It is expected that after the recent Pak-Saudi agreements, there will be a clear improvement in the economic condition of the country. An increase in foreign exchange reserves will also be seen along with repayment of external debts and liabilities. Special Economic Zones in Pakistan can meet Saudi Arabia’s foreign direct investment needs. One of the benefits of foreign investment is that it can help diversify an economy.

This can help reduce the country’s dependence on a few key sectors and make its economy more resilient. At this time it is very important for us to increase our exports. This can be possible with foreign investment as local traders try to sell their products in the investor’s home market. This can help improve the country’s trade balance and reduce dependence on imports.

Saudi Arabia is keen to increase the bilateral trade with Pakistan to 20 billion dollars. At a time when new economic and military alliances are emerging all over the world, the mutual cooperation of regional countries is indispensable not only for the better interest of the state but also for the better interests of the entire region and strong regional defense. Saudi Arabia is the largest economic force in the Middle East, while Pakistan is undoubtedly a major defense force. This relationship is also very important and effective.

A delegation of investors from more than 30 Saudi companies has come to Pakistan under the leadership of Saudi Arabia’s Deputy Investment Minister Ibrahim Al Mubarak. The purpose of the three-day Saudi visit is to further promote trade relations between the investors of the two countries on various business opportunities in Pakistan.

According to the Pakistani federal minister, more than 30 heads of Saudi Arabia’s information technology, marine, mining, oil and gas, pharmaceutical and aviation companies are part of this delegation. Investment agreements and memorandums of understanding worth up to $10 billion are likely to be signed. Apart from this, heads of finance, agriculture, telecommunication, construction, logistics services, property developers, retailers and other companies are also part of the delegation.

The crown prince of Saudi Arabia, Mohammed bin Salman, wants to create a new world in the light of his vision 2030, which will dazzle the eyes of the inhabitants of all other worlds. In this regard, Saudi Arabia needs the full support of Pakistan. On the other hand, Pakistan also needs the special support of Saudi Arabia to overcome its difficulties.

Foreign investment in Pakistan is very important. The confidence and satisfaction with which the government of Saudi Arabia and Saudi capital are ready to invest in Pakistan will create a new environment for construction and development in Pakistan. Opportunities will increase. The economic recession that the country is currently going through, new loans have to be taken to pay off the foreign debts and this is a cycle that does not seem to end. It is ironic that most of the resources are being lost to corruption and smuggling. Only the smuggling of petrol causes a loss of two billion dollars to the national treasury every year. In such a situation, if Pakistan succeeds in getting investments from Saudi Arabia and other friendly countries and sources, then the country will go on the path of economic development. Employment will increase, inflation will decrease and poverty will be eradicated.

The government will have to play its role in this matter with complete fairness. China is already implementing an economic corridor plan that requires special attention to security. Saudi Arabia is also a part of CPEC. Saudi Arabia’s participation in CPEC will not only strengthen CPEC, but also the beginning of a new era of partnership between China and Saudi Arabia through Pakistan, which will also lead to new changes at the global level.