THE visit of a high-level delegation to Pakistan under the leadership of Saudi Foreign Minister Faisal Bin Farhan will mark the beginning of a new era in the already enthusiastic relations between the two countries. It will be instrumental in revitalizing Pakistan’s static economy. The composition of the delegation, which included a host of ministers and senior officials of the Saudi government, not only underscores the strength and stability of Pakistan-Saudi relations but also sends a message to the world that these relations are robust and moving towards strong economic and investment cooperation. This is promising news not only for Pakistan and Saudi Arabia but for the entire Muslim Ummah.
On this occasion, the determination of Pakistan and Saudi Arabia to establish a robust partnership for mutual benefit and to further promote economic cooperation was reiterated. According to sources, Pakistan has addressed all major concerns of Saudi Arabia. Twenty-five projects with a potential investment of $32 billion have been identified, including PIA privatization, airports privatization, mining, Bhasha Dam, Matiari-Moro-Faisalabad transmission lines, Rahim Yar Khan-Ghazi Brotha transmission lines, and many other areas including conductor manufacturing.
This investment will stabilize the economy and create new employment opportunities. If we look at the history of brotherly relations between Pakistan and Saudi Arabia, the extraordinary ties between the two nations are deeply rooted in the people of both countries. After the visit of the Saudi delegation to Pakistan and the indication of investment, a positive change is being observed among the people of the country, boosting the confidence of the government. It is expected that after the recent Pak-Saudi agreements, there will be a clear improvement in the economic condition of the country. An increase in foreign exchange reserves will also be observed along with the repayment of external debts and liabilities. Special Economic Zones in Pakistan can fulfil Saudi Arabia’s foreign direct investment needs.
One of the benefits of foreign investment is that it can help diversify an economy by promoting the growth of other industries such as manufacturing or services, providing a more stable source of income. This can help reduce the country’s dependence on a few key sectors and make its economy more resilient. At this time, it is crucial to increase exports, which can be facilitated by foreign investment as local traders strive to sell their products in the investor’s home market, thereby improving the balance of payments.
Most importantly, Saudi Arabia is willing to elevate bilateral trade with Pakistan to $20 billion. The Saudi government possesses public investment funds that can be utilized to invest in large factories in Pakistan and upgrade them for increased production. Indeed, Saudi Arabia aims to expand its global connections. In an era where new economic and military alliances are emerging worldwide, mutual cooperation among regional countries is essential not only for the betterment of individual states but also for the entire region’s interests and strong regional defence.
Saudi Arabia stands as the largest economic force in the Middle East, while Pakistan is undoubtedly a major defence force. This relationship appears to be highly significant and effective. It is expected that this new development in Saudi-Pak relations will be beneficial for both countries in every aspect.
—The writer is contributing columnist, based in Faisalabad.
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