As people and Government of Saudi Arabia are celebrating the day when the Kingdom was unified by King Abdulaziz Ibn Saud through a royal decree in 1932, I thought it appropriate to pen down a few lines to share their joy in view of excellent bilateral relations between Pakistan and the Kingdom and Pakistan Observer’s proud legacy of championing the cause of this friendship.
This newspaper has a long history of closer ties with the Kingdom of Saudi Arabia as its founding Editor-in-Chief late Mr. Zahid Malik was a strong advocate of the cause of friendship with the KSA, which was not only closer to the hearts of every Muslim because of its spiritual centrality but also by virtue of the prudent policies that the Saudi leadership has pursued all along for betterment of the humanity in general and the Islamic Ummah in particular. He always remained in close contact with successive Saudi ambassadors in Islamabad and visited the Kingdom many times on important occasions as part of his efforts to help develop unbreakable linkages between the two brotherly countries in different spheres of life. Zahid Malik was one of those opinion-makers in Pakistan, who firmly believed that the country should expand and diversify relations with the Kingdom as this has potential to put Pakistan’s economy on the path of growth and stability. With this in view, he emphasized the need to pursue ‘Look Arab’ policy with focus on trade, investment and manpower export.
It is known to every Pakistani that Saudi Arabia provided the country the much needed economic, financial, diplomatic and political support during times of crises and needs. It was in the forefront of relief, rescue and rehabilitation phases whenever Pakistan was hit by natural calamities like earthquakes, floods, incessant rains or droughts. Three recent developments lent credibility to the widely held perception that Saudi Arabia is part of Pakistan’s economic life line. This was also acknowledged at the highest level by Prime Minister Shehbaz Sharif, who praised Saudi Arabia, along with China and the United Arab Emirates, for its lead role in helping Pakistan bridge over its economic and financial challenges. The country struck a staff level agreement with the International Monetary Fund (IMF) for $7 billion Extended Fund Facility (EFF) in July but its approval and disbursement process was held up for want of assurances for the required external financing. Pakistan approached friendly countries like Saudi Arabia, UAE and China for the purpose and all of them responded positively, paving the way for clearance of the deal. Reports suggest a breakthrough with the IMF was achieved after confirmation of $12 billion from the KSA, China and the UAE to the tune of $5
billion, $4 billion and $3 billion, respectively. Apart from this, Saudi Arabia also favourably responded to the request of Pakistan for an oil facility.
Another development that highlighted the importance of Saudi Arabia for Pakistan was a substantial increase in home remittances by overseas Pakistanis working in the Gulf countries, especially Saudi Arabia. This has enabled the country to clinch fifth position in the top remittance-receiving countries in the world. Remittances have a special relevance to Pakistan’s economy as these are close to the total volume of the country’s exports in a year. It may be mentioned that in August 2024, Pakistan received $2.9 billion in workers' remittances, which was a 40.5% increase from the same month in 2023. Remittances from Saudi Arabia were $713 million, 45% increase over August 2023 and this was because of increased manpower export to the Kingdom. Sky is the limit as far as export of manpower to the KSA is concerned as under the dynamic leadership of Crown Prince Mohammed bin Salman, popularly known as MBS, the country is pursuing an aggressive agenda to diversify its economy and create world’s top class infrastructure besides establishment of new cities.
The third recent development is the keen interest shown by the Kingdom for investment in different sectors of Pakistan’s economy. This is not a hollow slogan but a ground reality as confirmed by Saudi Commerce Minister Majid Al Kasabi, who declared during his visit to the country in April 2024 that Pakistan was the Kingdom’s ‘priority’ for investment and trade as per the directive of the Crown Prince. The two countries are engaged in formulation of a legal framework to ensure meaningful Saudi participation in Pakistan’s economy including acquisition of shares in the Reko Deko project and investment in information technology, renewable energy and tourism – sectors with potential to help transform Pakistan’s economic landscape.
It is also a fact that due to the efforts of the Special Investment Facilitation Council (SIFC), there are bright chances of Saudi and UAE investment in capital and machine-intensive corporate farming in Pakistan, which would help boost productivity of the agriculture sector contributing to the efforts of the Government to ensure food security and produce adequate surplus for exports. The success of this cooperation would surely bolster Pakistan’s financial position, which is a source of perennial concern for the government and people of Pakistan.
Saudi Arabia has also become a primary trading partner of Pakistan in the Middle-East region. Pakistan imports oil, petrochemicals, and machinery from Saudi Arabia, while its principal exports to the Kingdom include textiles, food products, and construction materials. The volume of the current bilateral trade
stands at $5.7 billion and it has the potential to increase significantly if Pakistan makes careful planning to take advantage of ambitious developmental activities being undertaken by the Kingdom in the length and breadth of the country.
The prospects of increasing trade and exporting manpower can be gauged by the fact that under the Vision-2030, the Kingdom plans to invest $3.1 trillion by 2030. The vision aims to achieve the goal of increased diversification economically, socially and culturally, in line with the vision of Saudi Crown Prince and Prime Minister Mohammed bin Salman. Vision 2030 is not a paper dream but is backed by sound planning and implementation under the watchful eyes of the Crown Prince. It is hoped that the successful implementation would help the Kingdom diversify its oil-based economy with focus shifting towards tourism, information technology and renewable energy. The vision envisages a number of projects including the globe’s most ultra-modern city called Neom, The Line, Saudi Green Initiative, Special Economic Zones, Made in Saudi and Mohammed bin Salman Nonprofit City “Misk City” (focused at exploiting potential of Saudi youth), which would surely attract millions to Saudi Arabia as tourists and businessmen.
The Saudi leadership must also be praised for its visionary approach to develop and expand holy places to accommodate more visitors and facilitate them in every respect.
I am sure a secure and even brighter future awaits people of Saudi Arabia under the pragmatic leadership of Crown Prince MBS.
