Pakistan and Saudi Arabia have decided to further enhance bilateral economic ties in various sectors including banking, agriculture, investment, education, infrastructure development, energy and health. This was decided Wednesday in the sitting of the 9th session of Pak-Saudi Arabia Joint Ministerial Commission (JMC).
Saudi Minister for Commerce and Industry Dr Tawfiq bin Fawzan AI-Rabeea and Pakistan's Commerce Minister Amin Fahim jointly headed the meetings. "We discussed various issues including seeking Saudi support in finalisation of Pak-Gulf Co-operation Council (GCC) negotiations on Free Trade Agreement (FTA) and investments in other sectors," Tawfiq said. Both the countries also decided to hold next meeting of the commission in March 2013 and another meeting in the third quarter of the 2013 to finalise and review the progress of the decisions taken in Wednesday's meeting, the Saudi minister added.
On a question regarding the resumption of oil supply on deferred payments to Pakistan, the Saudi Minister did not give a clear cut reply and said that oil trade is being done by the private sector. He said that Saudi Aramco is dealing with the fuel business as per international terms and conditions.
A senior official of the commerce ministry said that Pakistan has requested Saudi Arabia for $131 million dollars assistance in the construction of Neelum-Jhelum Hydro Project, while the Saudi government has agreed to provide $80 million dollars. The rise in oil price in international market has significantly increased pressures on Pakistan's balance of payment position. The Saudi government is to consider scholarships for Pakistani students in Saudi universities as well as recruiting doctors and engineers.
The minister said that over 1.5 million Pakistanis are working in different fields in Saudi Arabia and annual trade between the two countries is $5 billion, which needs to be enhanced and both the countries are working on it The delegation comprising various senior officials arrived in Islamabad on September 24, 2012 and evaluated the progress of the decisions taken during the 9th session of Pak-Saudi JMC held in Riyadh in 2007.
During the technical discussions the delegates from both countries presented various proposals to enhance bilateral trade & industrial development, joint ventures, promotion of banking, investment and energy. Besides, discussion on export of labour to Saudi Arabia talks on exchange of youth delegations were also held.
Main decisions taken by the JMC are as under: Resumption of talks on the draft agreement for promotion and protection of investments in both countries. Facilitating necessary entry visas for businessmen so that trade and investment could boost between the two countries.
Invitation to Saudi investors to invest in hydropower projects. Exploration of the possibility of entering into industrial co-operation including joint ventures in agriculture, light & heavy industry and petroleum sector. Development of small and medium enterprises (SMEs) in Saudi Arabia to uplift this important sector of economy. Initiating contacts between pharmaceutical and textile companies of both countries to explore areas of mutual interest and co-operation. Collaboration in the insurance and financial sectors. Early signing of agreement on security co-operation and MoU on drug smuggling Tawfiq also made important official calls on Pakistani leadership where he discussed matters of mutual interest and regional importance with the officials.

Copyright Business Recorder, 2012

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