Pm Gets Update on Pakistan-Saudi Business-to-Business Agreements
Published on: June 6, 2024.
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PM Shehbaz Sharif Informed About Signing of MoUs During Saudi Delegation’s Visit
Prime Minister Shehbaz Sharif has been updated on the signing of two memoranda of understanding (MoUs) during the recent visit of a Saudi delegation. The Memorandums were signed as part of a business-to-business (B2B) collaboration between Pakistan and Saudi Arabia.
Following the visit of the Saudi delegation, the Prime Minister requested a report on any joint ventures between Pakistan and Saudi Arabia. According to the officials from the Investment Facilitation Council (SIFC) and the Board of Investment (BoI), two MoUs have been signed in relation to fried onions products and human resource development (HRD).
The officials also mentioned that there is a possibility of further agreements in the meat, HR, mining, telecom, and oil sectors. The keen interest of entrepreneurs from Saudi Arabia in investing in bankable projects has been conveyed to Prime Minister Shehbaz Sharif.
The Saudi business delegation consisted of representatives from thirty companies, who held 447 B2B meetings with over 140 Pakistani companies. A proposed follow-up mechanism has been submitted to the Prime Minister, suggesting the establishment of focal points in SIFC, Ministry of Commerce, and BoI to facilitate business interactions between Pakistani and Saudi companies.
Under this mechanism, Pakistani company delegations will visit Saudi Arabia after the Royal Visit to Pakistan, and multiple trade promotion activities will be organized to enhance interaction between entrepreneurs of both countries.
The report also highlights the participation of 55 Pakistani companies in the Saudi Food Fair held in May 2024. The authorities plan to continue arranging for Pakistani and Saudi entrepreneurs to participate in future trade promotion activities in both countries.
The main products exported from Pakistan to Saudi Arabia include rice, bovine meat, and spices. The exports from Pakistan to Saudi Arabia have shown a steady increase over the years, from $146 million in 1995 to $472 million in 2021. In 2021, Saudi Arabia exported $3.4 billion worth of goods to Pakistan.
In the fiscal year 2021-22, bilateral trade between Pakistan and Saudi Arabia reached $5.581 billion, with Pakistan exporting $428 million and importing $5.152 billion from Saudi Arabia. However, in 2022-23, the bilateral trade declined to $4.753 billion due to restrictions on imports caused by a shortage of dollars.
During the first half of the current fiscal year 2023-24, the bilateral trade reached $2.482 billion, with imports from Saudi Arabia at $262.58 million and imports to Saudi Arabia at $2.219 billion, resulting in a trade deficit of $1.957 billion.
Overall, these developments indicate the growing economic ties between Pakistan and Saudi Arabia, with potential for further collaboration in various sectors. It is important for Pakistani entrepreneurs to develop bankable projects to attract investment from Saudi Arabia.
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