SCREENGRAB
While focusing on new areas of trade, investment and development, Pakistan and Saudi Arabia on Monday vowed to promote bilateral trade and exploit its full potential as currently the trade volume stood at $3.7 billion, which was far below the potential.
“There are many untapped potential areas, which could be explored for the benefit of both countries in order to take advantage of trade opportunities and attract investments,” said Adviser to Prime Minister on Commerce, Textile and Industry Abdul Razak Dawood while speaking at the Pakistan-Saudi Investors Conference. Saudi Commerce Minister Majid bin Abdullah Al-Qasabi also spoke on the occasion.
Both countries had a huge potential as Pakistan possessed natural, agricultural and human resources whereas there were many untapped potential resources in Saudi Arabia including mining, logistics and religious tourism, he said.
The adviser reiterated government’s resolve to provide Saudi investors with a level playing field in exploring trade and investment opportunities in various sectors of the national economy.
He emphasised that Pakistan’s economy was heading in the right direction, but was facing energy shortage, adding that in such a scenario, China came forward and made heavy investment in energy generation projects under the China-Pakistan Economic Corridor (CPEC).
He highlighted that Pakistan was formulating a renewable energy policy in a bid to change its energy mix, reduce reliance on costly energy sources like oil and gas, and produce alternative energy, which currently has only 4% share and would be enhanced to 30% by 2030.
Besides Saudi investors, he pointed out, all domestic as well as foreign investors would also be provided a level playing field and facilities to promote investment, economic development and social prosperity in Pakistan.
“We are extremely grateful to the Saudi crown prince for coming forward and bringing huge investment in Pakistan,” he remarked.
The PM adviser stressed that it was a quality-based market investment with strong representation from private sectors of both the countries. There were fruitful discussions with the Saudi investors and businessmen, who expressed keen interest in investing in petroleum and energy production, as a huge scope for investment existed with lucrative returns, he said.
Saudi crown prince pledges $20b investment
Dawood told the Saudi investors that currently Pakistan heavily depended on expensive energy production and intended to switch to a cheap energy mix by cutting costs and focusing on alternative sources such as wind and solar power. “Saudi investors are invited to take the opportunity and invest in this sector,” he said.
The adviser invited the Saudi investors to also pour capital into other sectors like mines and minerals, agriculture and food processing, adding that joint ventures in different sectors would be equally beneficial for both the countries as a youth bulge and skilled workforce was available in Pakistan.
He expressed the hope that trade talks and meetings with Saudi counterparts would open more avenues and expand the scope of bilateral trade and investment.
Addressing the conference, Saudi Minister for Commerce Majid bin Abdullah Al-Qasabi termed the current bilateral trade volume of $3.7 billion low, saying the trade level was very moderate and it should be enhanced by exploiting new areas of trade and development.
He said the current visit of the Saudi crown prince would help ease the bureaucratic challenges on both sides. He vowed to work jointly to take bilateral trade to new highs.
The Saudi commerce minister said both the countries had formed the Pak-Saudi Supreme Council, headed by Saudi Crown Prince Mohammad bin Salman and Prime Minister Imran Khan, which would have great positive impact on improving the partnership. “We are investing in the oil sector, which is a strategic commodity, will invest in the downstream industry, which will help create more business opportunities and lead to job creation,” he added.
Published in The Express Tribune, February 19th, 2019.
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