Pakistan and Saudi Arabia signed on Thursday 27 memorandums of understanding (MoUs) valued at $2.2 billion in various sectors.
“Our Saudi brothers led by Khalid Bin Abdul Aziz Al Falih have done a remarkable job of promoting the Saudi economy and with his presence here, we will have his full cooperation to promote bilateral investments and business opportunities,” Prime Minister Shehbaz Sharif said on the occasion.
A high-profile Saudi delegation, led by Minister for Investment Sheikh Khalid Bin Abdul Aziz Al Faleh, arrived in Islamabad for a three-day official visit. The signing ceremony was attended by Prime Minister Shehbaz Sharif, Al Faleh, and Chief of Army Staff General Asim Munir.
The MoUs cover a range of sectors including industry, agriculture, information technology, food, education, mining, health, petroleum, and energy, reflecting a commitment to mutual cooperation.
The premier described the Saudi delegation’s visit as a “true manifestation of great sincerity and affection” from Saudi Crown Prince Mohammed bin Salman towards the people of Pakistan. He expressed hope that this ceremony would pave the way for many more collaborative efforts in the future.
The PM affirmed the government’s commitment to implementing the MoUs and transforming them into actionable agreements through “hard work and untiring efforts.” He praised the contributions of Khalid Bin Abdul Aziz Al Faleh in promoting the Saudi economy and expressed optimism for enhanced bilateral investments and business opportunities.
The premier expressed optimism that future ceremonies similar to signing of MoUs would take place between Pakistan and Saudi Arabia.
He assured the Saudi delegation that the signed MoUs would be fully realized without any delays or bureaucratic hurdles in the implementation process.
PM Shehbaz also announced that Pakistan had successfully secured an International Monetary Fund programme, stating his hope that it would be the last one. He extended gratitude to the Saudi leadership for their crucial support in achieving this program, emphasizing that it would not have been possible without the Kingdom’s assistance.
“Finally, this programme is through, but we hope this will be the last one as we have already improved our economic indicators through excellent teamwork. Inflation has dropped from 32% to 6.9% this month, and our policy rate has decreased from 23% to 17.5%. Additionally, both exports and foreign remittances are on the rise,” he noted.
Pakistan and Saudi Arabia have embarked on a new era of economic cooperation, as evidenced by the recent Pakistan-Saudi Business Forum held in Islamabad. The forum focused on expanding bilateral trade relations.
Saudi Minister of Investment Khalid Al-Falih expressed a strong commitment to increasing investment in Pakistan, highlighting numerous opportunities available. Pakistan’s Minister for Industries and Commerce, Jam Kamal, echoed this sentiment, emphasizing the country’s potential for investment.
Pakistan’s Minister for Petroleum, Musadik Malik, added that Pakistan represents a significant market for Saudi Arabian crude oil.
The forum, attended by several Pakistani federal ministers alongside Dr. Khalid Al-Falih, is seen as a significant step towards bolstering Pakistan’s economic growth and stability.
In his address, Minister Al-Falih emphasized the vast potential for growth in the Middle East and South Asia regions, advocating for collaborative efforts to achieve regional prosperity.
He noted the significant increase in bilateral trade between the two countries and stressed the importance of leveraging their geographical proximity to further boost economic ties. He highlighted the crucial nature of economic cooperation between Pakistan and Saudi Arabia.
Al-Falih further emphasized the importance of the Pakistan-Saudi Business Forum for fostering business relationships, stating that Pakistan is considered a “second home” to Saudi Arabia. He underscored the strategic partnership between the two nations, emphasizing their long-standing relationship rooted in religious and spiritual ties.
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb here on Thursday expressed optimism about Pakistan’s prospects, stating the country was at a good place on economic front and open to business.
Addressing the Pakistan Saudi Arabia Business Forum, Aurangzeb highlighted government policies aimed at strengthening the private sector to lead the country’s business and economy.
The minister emphasized that the government’s role was not to do business, but to facilitate the private sector. He welcomed Saudi Arabian delegates to promote trade and investment through a Business-to-Business (B2B) model.Aurangzeb cited significant progress in macroeconomic stability over the past 12-14 months. Pakistan achieved a primary surplus, reduced its current account deficit to less than $1 billion, stabilized its currency, and increased foreign exchange reserves to cover two months of imports.
The minister noted that these gains have been consolidated in the current fiscal year, with strong remittances, export growth, and a reduction in inflation from 38% to 6.9%. The decrease in policy rate has also benefited businesses.Pakistan’s credit rating has been upgraded however added more was to be done to get the rate at B- at least. He said, institutional flows were coming back to country on both the debt and equity sides.
The Islamabad Stock Exchange reached a record high, and the International Monetary Fund (IMF) board approved an extended program for the country. He said, the IMF programme has two implications including bringing permanence in macroeconomic stability and secondly to execute structural reforms. He reaffirmed the government’s commitment to structural reforms, promoting sustainable growth and tax reform.
