Pakistan Strengthens Economic Ties with Saudi Arabia

Pakistan’s Business Prospects Shine at ‘Made in Pakistan’ Exhibition in Jeddah

Pakistan is making significant strides in fostering economic partnerships with Saudi Arabia, as Commerce Minister Jam Kamal Khan actively engages with leading Saudi business figures. The first-ever “Made in Pakistan” exhibition in Jeddah (February 5-7, 2025) has become a platform for strengthening trade ties and attracting foreign investment in Pakistan’s IT, energy, healthcare, agriculture, and infrastructure sectors.

A Thriving Trade Relationship with Saudi Arabia

Pakistan’s trade with Saudi Arabia has seen a steady rise, with the total trade volume reaching $5.2 billion in FY 2023-24, up from $5 billion the previous year. Minister Khan emphasized the country’s commitment to providing Saudi investors with a business-friendly environment, tax exemptions, and strong investor protection laws.

With a 240-million-strong consumer market, Pakistan offers a lucrative destination for foreign investors. Saudi business leaders have expressed interest in Pakistan’s construction materials, textiles, and food industries, sectors that align well with Saudi Arabia’s Vision 2030 economic diversification plan.

Ease of Doing Business in Pakistan

To attract foreign direct investment (FDI), Pakistan has launched several ease-of-doing-business initiatives, including:

• Pakistan Single Window (PSW): A digital trade facilitation system to reduce regulatory bottlenecks.

• National Compliance Center: Ensuring streamlined trade regulations and improved export standards.

These reforms are making it easier for foreign investors to enter and expand in Pakistan’s market, ensuring smooth business operations.

Major Investment Agreements and Collaborations

During Prime Minister Shehbaz Sharif’s visit to Riyadh last October, 34 agreements worth $2.8 billion were signed to boost private-sector collaborations. Now, Minister Khan is building upon these commitments by inviting more Saudi firms to participate in Pakistan’s TEXPO, Food-AG, and the Healthcare & Mineral Show.

One of the most anticipated developments is the expansion of Albaik, the renowned Saudi fast-food chain, into Pakistan. Albaik’s CEO, Rami Abu Ghazala, confirmed that the brand will soon launch its first outlets in Pakistan, creating new job opportunities and strengthening economic ties.

The Impact of Pakistani Expats in Saudi Arabia

Saudi Arabia remains the top destination for Pakistani emigrants, with 1.7 million Pakistanis traveling there in the past five years. Remittances from Saudi Arabia reached $7.4 billion last fiscal year, significantly contributing to Pakistan’s economy.

The newly established Pakistan Investor Forum in Jeddah is playing a crucial role in guiding businesses looking to expand in the Kingdom. It serves as a bridge for Pakistani entrepreneurs, fostering collaboration between both nations.

Why Saudi Investors Should Choose Pakistan

1. Strategic Location: Gateway to South Asia, Central Asia, and the Middle East.

2. Business Incentives: Tax exemptions, investor protection, and ease-of-doing-business reforms.

3. Diverse Market Opportunities: Energy, IT, healthcare, agriculture, and manufacturing sectors are rapidly growing.

4. Young and Skilled Workforce: A growing talent pool ready for innovation and entrepreneurship.

5. Deep Cultural and Diplomatic Ties: Long-standing friendship with Saudi Arabia ensures a stable and welcoming investment climate.

Conclusion: A New Era of Economic Cooperation

The Made in Pakistan exhibition has reinforced Pakistan’s position as an emerging economic powerhouse in the region. By opening doors to Saudi investment and strengthening business-to-business (B2B) ties, Pakistan is paving the way for a new era of economic prosperity.

As the first Albaik branches prepare to open and Saudi investors show increased interest in Pakistan’s dynamic market, the future of Pak-Saudi trade relations looks brighter than ever.

Are you an entrepreneur or investor interested in Pakistan’s booming market? Share your thoughts in the comments and explore exciting investment opportunities today!

Source: Arab News - Minister invites Saudi businesses to invest in Pakistan