FinMin briefs Saudi counterpart on ongoing PIA, key airports' privatisation

Reaffirms commitment to strengthening bilateral economic ties on sidelines of IMF-World Bank meetings in Washington DC

Federal Finance Minister Muhammad Aurangzeb reaffirmed on Thursday Pakistan's commitment to fostering a deeper economic partnership with Saudi Arabia, briefing his Saudi counterpart on ongoing privatisation on Pakistan International Airlines (PIA) and key airports. 

Aurangzeb was meeting Saudi Finance Minister Mohammed Aljadaan on the sidelines of the International Monetary Fund (IMF)–World Bank annual Meetings in Washington DC. The finance minister sought Saudi support for infrastructure development projects as both sides reviewed growing trade and investment relations. 

He reiteriated Pakistan's commitment to pursuing economic reforms under the IMF programme to ensure long-term macroeconomic stability. 

The IMF has announced a staff-level agreement for the release of $1.2 billion next loan tranches after Islamabad, for now, agreed to the old pre-floods budget targets and to publish the governance report before the board meeting.

Read: KE row resolved paving way for Saudi takeover

The two ministers agreed that institutions such as the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) could play a vital role in mobilizing and de-risking private sector investments in Pakistan.

Aurangzeb briefed his Saudi counterpart of the ongoing privatization process of PIA and key airports, underscoring the Islamabad's resolve to attract strategic investments through transparency and efficiency.

During a meeting with the CEO of the US International Development Finance Corporation in Washington DC, the finance minister highlighted significant investment opportunities in Pakistan's oil and gas, mines and minerals, agriculture, IT and pharmaceutical sectors.

Read more: Sialkot to get new industrial estate

Aurangzeb underscored the consensus at the leadership level to enhance trade and investment ties. He welcomed the DFC's interest in facilitating private sector-led funding for projects in Pakistan.

Cementing ties

In a major boost to Saudi-Pakistan investment relations, Prince Mansour Bin Mohammed Al Saud has signed a Memorandum of Understanding (MoU) with Chishti for the acquisition of a majority shareholding in KES Power Ltd, the parent company that owns 66.4% of K-Electric last week.

In an interview with Express News in New York, Defence Minister Khwaja Asif said Pakistan and Saudi Arabia's decades-long partnership has now been formalised and expanded to include defence and commercial investments.

Punjab Chief Minister Maryam Nawaz Sharif recently granted approval in principle to establish a new industrial estate in Sialkot. Chairing a meeting to review matters relating to industrial estates across the province, she agreed to a proposal to develop the zone on 400 acres of land near Sialkot International Airport.

She also agreed to offer four industrial estates to foreign investors in addition to those in Bhalwal, Vehari and Bahawalpur being considered for Saudi investment. In a significant move, she decided to allocate the Chunian Industrial Estate to the fisheries department.