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Saudi Arabian Business Delegation to Visit Pakistan for Trade Deals and Investment

A 50-member business and official delegation from the Kingdom of Saudi Arabia (KSA) is set to arrive in Pakistan on May 5th, 2022, for business-to-business (B2B) meetings with Pakistani entrepreneurs. The talks, scheduled for May 6th and 7th, will focus on trade deals and investment in joint ventures.

The visit holds promise for progress in various sectors of the economy, including government-to-business (G2B) and government-to-government (G2G) deals. Prime Minister Shehbaz Sharif has formed a 16-member steering committee to oversee the visit. The committee, chaired by the petroleum minister, is responsible for organizing business meetings and finalizing security arrangements for the Saudi delegation.

The committee comprises federal ministers from trade, privatisation, power, industry and production, as well as the Pakistani ambassador to Saudi Arabia, secretary of the Special Investment Facilitation Council (SIFC), and chief protocol of the Ministry of Foreign Affairs. Other members include the deputy chairman of the Planning Commission, the minister of state for IT, and secretary-level officials from power, petroleum, home, trade, and investment boards.

The steering committee has been tasked with conducting business meetings and ensuring the security of the Saudi business delegation. They will also finalize the Pakistani business delegation for meetings with the Saudis. The Ministry of Commerce will provide secretarial support to the committee.

Ahead of the visit, federal ministers of commerce, food security and industry, privatisation, the Board of Investment, and petroleum and power divisions held preliminary meetings to prepare for the B2B talks.

Pakistan aims to strengthen trade ties with the KSA, as the country is currently facing a trade deficit. The upcoming B2B trade talks are expected to boost exports from Pakistan to Saudi Arabia in sectors such as IT, energy, food, chemicals, meat, mining, agriculture, and more.

The Saudi business delegation’s visit follows Foreign Minister Prince Faisal Bin Farhan Al Saud’s two-day visit to Pakistan in April 2022. During the visit, Pakistan proposed various projects, including the upgradation of Pakistan Refinery Limited (PRL), a petrochemical complex, a white oil pipeline, and a power transmission line. The government also sought Saudi investment in the Diamer-Bhasha Dam, the purchase of PIA, joint ventures for airports and hotels, and offered the First Women Bank to Saudi investors.

Pakistan had previously sent a business delegation to Riyadh for a B2B Conference held in February 2024. The upcoming talks will expand the scope of B2B opportunities in sectors such as IT, services, minerals, environment, and logistics.

The Saudi Arabian market presents significant potential for Pakistani entrepreneurs. As the biggest economy in the Gulf region with a GDP of $1.1 trillion in 2022, the KSA offers lucrative B2B contracts for Pakistani businesses. Pakistan aims to increase exports to the KSA and is actively pursuing a formal free trade agreement (FTA) with the Gulf Cooperation Council (GCC), which includes Saudi Arabia, the UAE, Oman, Kuwait, Bahrain, and Qatar.

In recent years, Pakistan’s exports to Saudi Arabia have grown at an annualized rate of 4.62%, reaching $472 million in 2021. The trade deficit between the two countries stood at $4.723 billion in 2021-22 and slightly decreased to $3.627 billion in 2022-23. The bilateral trade during the first half of the current fiscal year 2023-24 amounted to $2.482 billion.

Overall, the visit of the Saudi Arabian business delegation is expected to strengthen economic ties between Saudi Arabia and Pakistan and boost trade and investment opportunities.

Source: The News Pakistan