Prime Minister Shehbaz Sharif met with Saudi Crown Prince Mohammed bin Salman on Thursday where they discussed strengthening bilateral cooperation across several sectors, including economic, trade, investment, energy, and defense.
The meeting, part of Shehbaz Sharif’s four-day visit to Saudi Arabia, comes as Pakistan seeks to bolster its trade and investment relationships with global partners, particularly in light of its ongoing economic challenges.
Saudi Arabia has committed a $5 billion investment package to Pakistan, aimed at stabilising its foreign reserves and addressing its balance of payments crisis.
This follows a series of agreements and memorandums of understanding (MOUs), including 34 agreements worth $2.8 billion signed last year to enhance private sector and commercial collaboration.
Both nations are also in advanced discussions on investing in the Reko Diq copper and gold mine, one of the world’s largest undeveloped copper-gold areas.
Additionally, Pakistan signed an agreement with the Saudi Fund for Development last month to defer a $1.2 billion payment on oil imports for one year.
During the meeting , Prime Minister Shehbaz Sharif expressed his appreciation for Saudi Arabia’s commitment to increasing investments, which will contribute to Pakistan’s economic stability.
Both sides reaffirmed their historical ties and stressed the importance of enhancing cooperation in defense and security to address regional challenges.
They also discussed regional and geopolitical developments and agreed to work closely to promote peace, stability, and prosperity.
The two leaders emphasised the need for stronger people-to-people ties, cultural exchanges, and educational collaboration.
Meanwhile, PM Shehbaz also held discussions with Saudi Investment Minister Khalid Al-Falih and Mohammad Al-Tuwaijri, Head of the Joint Task Force for Economic Engagement, during his four-day official visit to Saudi Arabia.
The talks focused on strengthening economic cooperation, attracting Saudi investments, and expediting joint initiatives in key sectors. Prime Minister Sharif expressed Pakistan’s commitment to facilitating Saudi investors, emphasizing the country’s strategic location and its investment-friendly policies.
Sharif highlighted Pakistan’s potential in sectors such as energy, infrastructure, agriculture, and technology, encouraging Saudi businesses to explore opportunities under the Special Investment Facilitation Council (SIFC).
In response, Minister Al-Falih and Al-Tuwaijri conveyed Saudi Arabia’s interest in deepening economic ties with Pakistan. The discussions also included enhancing institutional collaboration to expedite investment projects and ensure their effective implementation.
The meeting reaffirmed both countries’ commitment to developing a long-term and mutually beneficial economic relationship.
Prime Minister Shehbaz Sharif was accompanied by Deputy Prime Minister and Foreign Minister Muhammad Ishaq Dar, Chief Minister of Punjab Maryam Nawaz Sharif, Minister for Climate Change Musadik Malik, and National Coordinator of the SIFC Lt. Gen. Sarfraz Ahmed.
The Saudi delegation included representatives from the Saudi Ministry of Investment and the Joint Task Force for Economic Engagement between Saudi Arabia and Pakistan.
It should be noted here that Pakistan and Saudi Arabia maintain strong trade relations, with petroleum products from Saudi Arabia making up a significant portion of Pakistan’s imports. Additionally, Saudi Arabia is home to over two million Pakistani expatriates and is a major source of remittances for Pakistan.