Pakistan seeks to unlock Saudi investment

Shehbaz to meet MBS, discuss investment during two-day visit

ISLAMABAD:

Prime Minister Shehbaz Sharif will leave for Saudi Arabia on Saturday (today) on his first major foreign visit since his election in February, the Foreign Office announced on Friday, as the newly-formed government seeks to unlock opportunities in the strategic sectors, particularly in Reko Diq -- one of the largest copper and gold reserves in the world.

In addition to financial support, Pakistan has lately been trying to secure Saudi investment in industries ranging from agriculture to mines, minerals and aviation. Islamabad says Riyadh has shown interest in acquiring government stakes in Reko Diq gold and copper mine, which could be a major deal for the country’s economy.

During his two-day visit starting April 6, the prime minister will perform Umrah and offer prayers at Masjid Nabwi Al-Sharif. The prime minister will be accompanied by ministers for foreign affairs, defence; finance, information and economic affairs.

The prime minister is also expected to meet Saudi Crown Prince and Prime Minister Mohammed bin Salman and discuss issues of mutual interest. The two leaders will also exchange views on regional and global developments.

The government has prepared a comprehensive plan to bag an investment of over $1 billion from Saudi Arabia in the Reko Diq Copper-Gold Project located in Balochistan’s Chaghi district.

The plan, prepared by the finance and energy ministries as well as the Board of Investment, has been presented to the prime minister. Federal Finance Minister Muhammad Aurangzeb will give a special briefing to the kingdom’s investors on the investment plan in the project.

Also read: Saudis may invest $1b in Reko Diq

Saudi Arabia will also be given special incentives to invest in the project and the finance minister will inform the investors about them during his briefing.

Sources said the size of Saudi Arabia's investment transaction in the Reko Diq Copper-Gold Project would be the largest even though the Canadian firm, Barrick Gold Corporation, owns 50% stake in the mine.

The major investment in the project is being made through the Special Investment Facilitation Council (SIFC). The council was established to attract foreign investments, specially from the Gulf nations. In September last year, it unveiled a new visa policy, targeting increased investments from the Gulf Cooperation Council (GCC) nations and other countries.

The sources said the SIFC had been taken into confidence in connection with the Saudi investment in the project as well as the plan chalked out for the purpose.

On the trip to Saudi Arabia, members of the committee established for investment in the Reko Diq Copper-Gold Project -- including officials of the finance and energy ministries as well as the Oil and Gas Development Company Limited (OGDCL) -- will also accompany the premier.

The Saudi government has not yet commented on the visit or its agenda. Sharif last traveled to Saudi Arabia during his first term as PM in October 2022. He met the crown prince during the visit and also attended the Saudi Future Investment Initiative summit.