Pakistan can be an ideal destination for Saudi investment: Ahsan

ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal emphasised that Pakistan can be an ideal destination for Saudi investment, given the government’s strong focus on exports and investment as key drivers of economic growth.

The minister expressed these views, while meeting with the visiting Saudi Minister for Investment in Islamabad on Friday.

He also stressed to strengthen strategic cooperation and enhance bilateral trade and investment between the two nations.

During the meeting, the minister reiterated the coalition government’s unwavering commitment to fostering favourable conditions for investors, prioritising peace, stability, and ease of doing business.

Both sides reaffirmed their strong resolve to expanding trade and investment ties, with recent months witnessing active collaboration across critical sectors. The two countries further agreed that the ongoing high-level engagements are pivotal step in deepening partnership in the areas such as trade, defence, and energy, further positioning Pakistan on the path to economic recovery despite ongoing challenges related to foreign exchange reserves and currency fluctuations.

Citing the trade figures between both countries, which was 4.6 billion dollars in 2022, the minister said that Pakistan is committed to increase it by collaborating with current Saudi leadership.

Reflecting on the beginning of Chinese cooperation in the form of CPEC projects, he said that "In 2013, I was given responsibility of starting a game changer project with China. It started with a piece of paper. Within 3-4 years, Pakistan has brought 25 billion dollars of investment under CPEC."

He said that a big challenge Pakistan is facing is the capacity of low-skilled labour working in Saudi Arabia. "If the labour class returns to Pakistan, it will result in a significant decrease in FDI."

The minister suggested training the skilled Pakistanis and upgrading their technical capabilities to retain them in the Saudi economy.

Both sides discussed areas in which bilateral trade can be increased. The minister stated that both countries can export meat to third-world countries as Pakistan's agricultural products are at par with any product from developed countries.

Highlighting that Pakistan is the third biggest milk producer in the world, Pakistan's animals provide an average yield of 1,800 litres but the global standard is 6,000-8,000 litres. The minister said that increasing agricultural productivity is a key focus area for the government. "Our agricultural products can compete with that of New Zealand and Denmark if we boost our standards."

Talking about Saudi Arabia's immense natural resources, the planning minister said that Kingdom of Saudi Arabia, having huge stretches of land, has effectively converted its deserts into water rich resources.

The minister said that a planet with 70 per cent water cannot have lack of water. He hinted towards the desalination of earth through power generated as well as chemical methods. The minister said that in 2013, solar power was 12 cents per unit now it is very cheap.

He suggested the Saudi minister to lead a project where Pakistan can focus on desalinisation technology whose research can be facilitated by China.

Both sides expressed hope in the immense potential promised by Pakistan-Saudi-China partnership.

The Saudi minister said that Saudi Arabia is lowering cost of desalinisation as a result of which portable water can be provided to their population. He also positively expressed sharing the Kingdom's National Transformation Plan for five years.

Furthermore, he extended his cooperation in making Pakistan a trillion-dollar economy.

Copyright Business Recorder, 2024