AFTER the end of politically and diplomatically tumultuous and economically disastrous over three and half year Imran regime, 27 agreements worth billions of dollars have been signed between Pakistan and Saudi Arabia. The arrival of a high-level delegation to Pakistan under the leadership of Saudi Investment Minister Khalid Abdul Aziz Al-Falih early this month was just the starting point of a new economic journey between Pakistan and KSA. After this, the Barrick Gold agreement will be signed very soon. Bilateral trade has increased by nearly 80 percent from $3 billion in 2019 to $5.4 billion today. Pakistan and KSA are making a detailed review about the creation of industrial clusters together. This is a reflection of the love of MBS towards the people of Pakistan regarding the creation of new industrial clusters.
The new agreements will promote further cooperation between the two countries. Pakistan and KSA have signed 27 MoUs worth 2.2 billion dollars for cooperation in various fields including energy, agriculture, mining, human resources and cyber security. Both the brotherly countries are committed to speedy implementation of these agreements and conversion of memorandums of understanding into agreements. The top leaderships of Pakistan and KSA are taking vigorous steps for the development of the economy of both the countries. Both the countries will do their best to promote bilateral trade and investment. The recent visit of the Saudi Minister is an important milestone in strengthening investment and economic ties between Pakistan and KSA.
Pakistan and KSA have decades old brotherly relations which are getting stronger with each passing day. Premier Shehbaz Sharif conferred the Saudi Minister of Investment the Hilal Pakistan Award, which is an acknowledgment of his outstanding services in advancing Pak-KSA relations. The role of Special Investment Facilitation Council (SIFC) is very important regarding investment in the country. There is an urgent need to transform the friendly relations between the two countries into a long-term strategic and economic partnership. Such cooperation will bring the two brotherly countries closer. The recent visit of the Saudi trade delegation to Pakistan is a manifestation of sustainable and brotherly relations between KSA and Pakistan.
Of course, this visit of the Saudi delegation to Pakistan will greatly benefit the economies of both brotherly countries. In this regard, there will be a dire need to focus on building trust between Pakistan and KSA. Establishment of Special One Stop Shop, Single Window System and SIFC are important factors in smoothening the investment process. Sheikh Khalid bin Abdul-Aziz Al-Falih expressed his happiness over the announcement of the investment of five billion dollars in Pakistan by MBS and revealed that this announcement was made immediately after PM Shehbaz Sharif’s visit to KSA. Public Investment Fund (PIF) has representation between Pakistan and KSA. Our relations with KSA are traditional and strong. Pakistan is producing many commodities and KSA has vast experience in oil economy. An industrial revolution is going on in the world for which both the countries are ready.
We will have to move towards this new destination together. If we remove the traditional red tape and lay the red carpet for the investors, we will be able to achieve success. Pakistan is on a journey of economic recovery and development. At this stage, there is an urgent need to make the country more attractive for foreign investment. The government should further improve reforms in public institutions and other issues including public services so that obstacles in the way of development and prosperity can be eliminated.
Pakistan’s capabilities in the fields such as mining, IT, agriculture and renewable energy have been recognized globally. Pakistan is inviting Saudi investors to participate in these profitable sectors. The historic cooperation of the Saudi government will have far-reaching effects on Pakistan’s economy. Important concrete steps should be taken to increase business-to-business activities between Pakistan and KSA so that prominent businessmen of both the countries can benefit from the business opportunities in a favourable environment. Pakistan can earn billions of dollars by offering its skills and services to other countries including KSA in the field of IT.
The IT sector holds the potential to significantly elevate Pakistan’s global standing. Pakistan should showcase its rapid development in the IT industry to the world. IT parks should be established in various cities, including Quetta, to further boost growth. Additionally, the joint potential of Pakistan and Saudi Arabia in the IT sector should be emphasized. Made-in-Pakistan products be marked for international recognition at the exhibition to be held in Jeddah next year. For a brighter future, the focus must be on expanding bilateral activities at both the government and business levels, while seeking new investment opportunities.
—The writer is author of several books based in Islamabad.
