Pakistan, Saudi finance ministers discuss strengthening economic ties

Finance Minister Muhammad Aurangzeb arrived in Kingdom at invitation of his Saudi counterpart, Mohammed Al-Jadaan

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Saudi Arabia and Pakistan on Saturday held talks on deepening economic cooperation, as the finance ministers of both nations met ahead of the Emerging Markets Conference in AlUla, Saudi Arabia, according to an official statement.

Finance Minister Muhammad Aurangzeb arrived in the Kingdom at the invitation of his Saudi counterpart, Mohammed Al-Jadaan, to attend the two-day conference, which begins on Sunday.

The annual economic policy forum, organised by the Saudi finance ministry in collaboration with the International Monetary Fund (IMF) regional office in Riyadh, will bring together emerging market finance ministers, central bank governors, policymakers, and private sector leaders.

“The meeting underscored a shared commitment to build bridges of economic cooperation and advance mutual prosperity,” finance ministry said in a statement after the discussion.

Both ministers explored opportunities to enhance bilateral trade, investments, and financial collaboration, reiterating their commitment to unlocking the full potential of their strategic partnership, the statement added.

Pakistan is navigating a fragile economic recovery under a $7 billion IMF loan programme secured in September 2024, following austerity measures and policy reforms aimed at averting a sovereign default in 2023.

To support Pakistan’s economic revival, Saudi Arabia signed 34 memorandums of understanding (MoUs) worth $2.8 billion last October, focusing on private sector investment in energy, infrastructure, and technology.

During their meeting, Aurangzeb and Al-Jadaan discussed collaboration in key sectors, including infrastructure, energy, technology, and finance. They emphasised the need for continued dialogue and joint initiatives to facilitate investment flows and economic opportunities that could benefit the broader region.

Aurangzeb is set to participate in a high-level panel discussion titled “The Path to Emergent Markets,” hosted by IMF Managing Director Kristalina Georgieva.

The conference will feature nine sessions with 200 participants and 36 speakers, covering topics such as economic resilience, financial policies for emerging markets, and global economic challenges.

“The conference will provide a unique platform for world leaders to discuss and analyse domestic, regional, and global economic conditions and developments and to exchange ideas on solutions to global challenges,” Pakistan’s finance ministry said.

The discussions come at a time of mounting global economic pressures, including persistent financial shocks, trade tensions between major world powers, geopolitical instability, and tight financial conditions.