Pakistan’s listed companies, including Citi Pharma Limited and Pakistan Cables, have entered into agreements with Saudi firms as the two countries strive to boost economic ties.
Citi Pharma Limited, a Pakistani pharmaceutical, signed a joint venture agreement with All Care Group of Investment, a Saudi investment company, to establish an advanced API (Active Pharmaceutical Ingredient) and Formulation Facility in Saudi Arabia.
“This collaboration represents a pivotal step forward for the pharmaceutical industry in the region,” said Citi Pharma in its notice to the Pakistan Stock Exchange (PSX) on Friday.
As part of the agreement, CPL will oversee technology transfer to Saudi Arabia, ensuring the production of APIs and formulations compliant with international Good Manufacturing Practices (GMP).
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Meanwhile, the All Care Group of Investment will be responsible for land acquisition and infrastructure development, products registration with Saudi Regulatory Authorities and securing financing through local banking institutions.
“The joint venture will focus on manufacturing essential APIs and formulation products to meet the healthcare needs of the KSA and the broader MENA (Middle East and North Africa) region, which serves a population of over 500 million.
“The facility will also act as a strategic export hub, targeting markets in MENA, South Africa, and beyond,” Citi Pharma said.
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The pharmaceutical was of the view that the venture would enhance its production efficiency and position as a significant player in the global pharmaceutical landscape.
“Additionally, this partnership opens the door to exporting Citi Pharma’s products to other regions, including India, China, and other International markets across the globe,” it said.
Citi Pharma informed that a major highlight of this venture is the future local production of key chemicals like Naphtha cracker chemicals, Phenol, and Benzeme materials that the company currently imports.
“With the establishment of this Saudi-based facility. Citi Pharma will be able to produce these chemicals at significantly lower costs and export them worldwide, ensuring competitive pricing and broad market reach.
Commenting on the partnership, Rizwan Ahmad, CEO of Citi Pharma Limited, stated: “This partnership will accelerate our growth, allowing us to expand into new territories and deliver substantial financial gains.”
Pakistan Cables’ MoU
Meanwhile, in a separate notice to the PSX, Pakistan Cables Limited signed a Memorandum of Understanding (MoU) with Bahra Electric, a leading manufacturer of cables and electrical goods in Saudi Arabia, aimed at strengthening collaboration in the industrial and energy sectors between Pakistan and the Kingdom of Saudi Arabia.
“The agreement focuses on the development of electrical products for the energy sector, enhancing supply chain resilience, and expanding distribution networks.
“This partnership is expected to foster long-term strategic collaboration and promote industrial development, contributing positively to economic relations between the two countries,” read the notice.
Pakistan and Saudi Arabia on Thursday signed 27 Memorandum of Understandings (MoUs) valuing $2.2 billion in various sectors including industry, agriculture, Information Technology (IT), food, education, mine & minerals, health, petroleum, energy and other areas of mutual cooperation.