Pakistan and Saudi Arabia have signed a memorandum of understanding (MoU) to work together in the field of information technology, PTV News reported.

“Both sides also agreed to promote the private sector apart from the government level,” the state broadcaster said in a post on X, erstwhile Twitter, on Sunday. “The agreement also includes a bilateral agreement on digital economy.”

The agreement has been signed by caretaker Federal Minister of IT and Telecom Umar Saif and Saudi Arabia’s Minister of Communications and Information Technology Abdullah A Al-Sawahah in Riyadh.

Saif, along with a delegation, left for the kingdom on September 30. He expressed hope that the visit would result in investments in the country and big business for Pakistani IT companies in KSA.

Saudi Arabia’s Ministry of Communications and IT also shared the update on X. It said that the agreement was signed to enhance the growth of the digital economy and expand the partnership between the two countries.

They signed the “memorandum to accelerate digital innovation, empower entrepreneurs, and develop the digital infrastructure.” The ministry described the development as an “important step” to encourage innovation and enhance growth opportunities in both countries.

“This will facilitate Pakistani companies to work in KSA, provide trained IT manpower to Saudi companies, promote joint ventures with Saudi companies and establish a startup exchange program with the top Saudi tech incubators,” Saif said in a post.

The minister added that the two countries would work on establishing close cooperation to set up a chip manufacturing industry in Pakistan and work on electric vehicles, lithium-ion batteries, agriculture technology, and mining technologies.

Earlier, he met with Digital Cooperation Organization Secretary General Deemah AlYahya

Saif was of the view that the DCO was uniquely positioned to help Pakistani companies expand their operations in several Gulf Cooperation Council countries.

“We will be working with DCO for a digital passport’ for Pakistani companies which will enable them to quickly start a business in DCO member countries, starting with Saudia,” he posted on X on Sunday.

He also expressed his intention with the DCO to host the Digital Direct Foreign Investment summit in Pakistan every year for all member states.

In response, AlYahya said it was an “absolute privilege” to welcome the Pakistani delegation.

“Pakistan’s role as a revered founding member state of our council fills me with immense pride,” she said, adding that the South Asian country was championing the Digital FDI, with DCO serving as a catalyst, attracting investments that transcend borders within the digital economy.

“Our journey together promises an exciting future, and I eagerly anticipate the triumphs of our collaborative work and advocacy.”

The interim government of Pakistan has decided to equip as many as 200,000 youths with information technology skills to tap the billion-dollar sector, which generates $2.6 billion worth of exports but has a capacity of $10 billion.