Global Rice News

Pakistan Optimistic About Bilateral Deals with Saudi Arabia

Commerce Minister Jam Kamal Khan expressed optimism about the high-level Saudi delegation’s visit to Pakistan, led by Foreign Minister Prince Faisal Bin Farhan Al Saud. The visit is expected to result in several billion dollars of investments in various sectors of Pakistan’s economy, including significant agreements on Reko Diq. The first wave of a planned $5 billion Saudi investment package for Pakistan is set to be expedited as a result of the visit.

Potential Investments and Agreements

Pakistan is positive about progress on business-to-business (B2B) deals and joint ventures (JVs) between top entrepreneurs from both countries. The planned investments are expected to cover areas such as Reko Diq, refinery, agriculture, and mining. The Saudi crown prince is also likely to visit Pakistan in May to sign important agreements for investments in these sectors, as well as in the Reko Diq project.

Expanding Business Partnerships

The high-level Saudi delegation includes top businessmen, who are expected to meet with Pakistani counterparts for B2B deals and joint ventures across various sectors of the economy. A meeting was arranged between Pakistani and Saudi business leaders in Karachi to further strengthen trade and investment ties. Pakistan aims to increase its exports to Saudi Arabia through B2B trade on a large scale.

Trade Deficit and Potential Growth

Pakistan faces a significant trade deficit with Saudi Arabia, the largest economy in the Gulf region. The bilateral trade between the two countries in 2021-22 was $5.581 billion, with a trade deficit of $4.723 billion. However, there are opportunities to increase exports from Pakistan to Saudi Arabia through B2B contracts and trade agreements. Efforts are being made to sign a formal Free Trade Agreement (FTA) with all Gulf Cooperation Council (GCC) member countries, including Saudi Arabia.

Positive Impacts on Pakistan’s Economy

The expected investments and increased trade with Saudi Arabia will have a positive impact on Pakistan’s economy. The initiatives taken by Pakistan with GCC member countries and the signing of FTAs will contribute to economic growth. In 2021, Pakistan’s main exports to Saudi Arabia included rice, bovine meat, and spices. The exports from Pakistan to Saudi Arabia have been steadily increasing over the years, reaching $472 million in 2021. With the new investments and enhanced trade, Pakistan aims to further boost its exports to Saudi Arabia.

Visits and Engagements

During the Saudi foreign minister’s visit, he is scheduled to meet with Pakistan’s Prime Minister Shehbaz Sharif, President Asif Ali Zardari, and Chief of Army Staff General Asim Munir. The Special Investment Facilitation Council (SIFC) will facilitate engagement and delegation-level talks between Pakistani and Saudi officials. The visit is part of the efforts to strengthen bilateral relations and explore opportunities for economic cooperation between the two countries.

Source: Geo News