Plan unveiled to double exports to S Arabia

The Small and Medium Enterprises Development Authority (Smeda) is working on a strategy to reduce the trade deficit between Pakistan and Saudi Arabia through joint investment projects in the export-oriented industrial sectors of Pakistan.

A meeting was held at the Smeda head office under the chairmanship of Federal Secretary Industries and Production Saif Anjum, who said that the government of Pakistan has planned to enhance the country's overall exports up to $120 billion by 2035, for which "we will have to identify the more export-oriented and import-substituting sectors in manufacturing with high value addition".

He observed that improved bilateral relations with Saudi Arabia can play a pivotal role in making a paradigm shift in enhancing Pakistan's exports and investments.

Speaking on the occasion, Smeda CEO Socrat Aman Rana observed that to expand trade and investment with Saudi Arabia, "we will initially have to give priority to the potential sectors like leather footwear, sports goods, surgical instruments, cutlery, textile and apparel". However, he suggested consulting the key stakeholders of these sectors to further expand the industrial base.

A presentation shared in the meeting revealed that currently, Pakistan's exports to Saudi Arabia stand at approximately $734 million and imports at $4.47 billion, resulting in a trade deficit of $3.37 billion. To address this imbalance, a five-year industrial development and trade diversification strategy is being advanced for industrial modernisation and targeted upgrading in coordination with the relevant divisions.

The strategy is aimed at doubling Pakistan's exports to Saudi Arabia and reducing the bilateral trade deficit by 25% through strategic cooperation and joint ventures.

A programme is also being proposed to strengthen value chains through partnerships with leading Saudi retail, healthcare and sporting goods firms under long-term purchase commitments.

In preliminary consultations with industry representatives, multiple joint venture opportunities between Pakistan and Saudi Arabia were identified across key sectors such as cutlery (Wazirabad), surgical instruments (Wazirabad), textiles (Faisalabad), sports goods (Sialkot) and leather footwear.