    

Monday, May 20, 2024 22:08

 Question of Palestine  Eternal Wisdom: Iqbal  Building

Advertisements

     

Hilal English

Pakistan and Saudi Arabia Friendship:

Dawn of a New Era
 May 2024

A Reflection on the Pakistan-Saudi Arabia Investment

Conference 2024

This article provides an enriching narrative of Pakistan and Saudi Arabia's

profound bond, marked by shared history, culture, and strategic interests, as they
forge ahead into a promising era of economic collaboration showcased vividly at
the 2024 Investment Conference, promising a brighter future for both nations.

Pakistan maintains strong bilateral relations with all Muslim countries worldwide.
However, its relations with Saudi Arabia have remained particularly special. The
reasons behind the warm relationship between the two countries are rooted in
enduring and mutual religious, defense-related, cultural, and mercantile ties. Both
countries have remained committed to supporting each other since the signing of
the Treaty of Friendship in 1951. Over the years, they have also succeeded in
developing a unique synergy for mutual development.
Saudi Arabia hosts the largest Pakistani diaspora, which has played a pivotal role
in bolstering institutional infrastructure across various sectors, including
engineering, medicine, and economics. Pakistani professionals have been
instrumental in advancing the Kingdom's development goals, while skilled and non-
skilled workers have contributed significantly, underscoring their importance as
valuable assets to Saudi Arabia's growth trajectory.
The ‘Vision 2030’ of Muhammad Bin Salman Al Saud, the Crown Prince of Saudi
Arabia, revolves around a few key elements, which include the revival of the
administrative system, improving the political ecosystem, and developing a
culture where law-abiding is considered a prime responsibility.

Being two leading members of the Organization of Islamic Cooperation (OIC), both
countries, in consonance with each other, have played an important role in uniting
the Muslim world on a common platform. In the recent past, this relationship
between the two countries has taken a new turn and embarked upon a path of
mutual benefit and support. The ‘Vision 2030’ of Muhammad Bin Salman Al Saud,
the Crown Prince of Saudi Arabia, revolves around a few key elements, which
include the revival of the administrative system, improving the political ecosystem,
and developing a culture where law-abiding is considered a prime responsibility.
Embedded in these objectives is economic diversity through exploring options
other than oil, pilgrimage, as well as ensuring food security for the population.
Main Elements of the Pakistan-Saudi Arabia Investment Conference
Pakistan has aligned itself with the objectives of Saudi Arabia's 'Vision 2030' and
has offered a long list of investment opportunities to Saudi Arabia with bilateral
benefits and advantages. The visit of the Prime Minister of Pakistan to Saudi
Arabia during the month of Ramadan and the plan of the Saudi Crown Prince to
visit Pakistan in the near future are links in the same chain. After the Prime
Minister of Pakistan's visit to Saudi Arabia, a high-level delegation from Saudi
Arabia visited Pakistan on April 15, 2024, welcomed by the Pakistan Foreign
Minister. The delegation had a formal meeting with the Special Investment
Facilitation Council (SIFC) as well, during which various aspects were discussed. A
brief overview of the Pakistan-Saudi Arabia Investment Conference, held on April
16, is provided below:
▪ The Saudi delegation, led by the Saudi Foreign Minister, was accompanied by a
myriad of officials, experts, and corporate sector leaders.
▪ The conference commenced with opening remarks by counterparts from both
countries, followed by a detailed presentation of investment opportunities
available in Pakistan for mid-to-high-level investments.
▪ This presentation was followed by a question-answer session during which Saudi
officials posed intriguing questions about the pitched opportunities.
▪ Following a brief break, both sides were divided into small groups for a series of
breakout sessions related to their respective sectors. These sessions served as
the main course of the conference, allowing discussions on relevant projects.
▪ During these breakout sessions, officials from both countries convened in
separate lounges, where detailed presentations of available projects were made.
▪ Towards the conference's conclusion, it was mutually agreed to make the
frequency of such meetings and conferences regular, at least once every month.
Both countries also agreed to establish joint working groups for each sector to
monitor progress on agreed-upon projects.
▪ Finally, both countries decided to create a digital dashboard regularly updated to
allow both sides to track the degree and level of completion of agreed-upon
projects.

After the Prime Minister of Pakistan's visit to Saudi Arabia, a high-level

delegation from Saudi Arabia visited Pakistan on April 15, 2024, welcomed by the
Pakistan Foreign Minister.

Peculiarities of the Pakistan-Saudi Arabia Investment Conference

There have been numerous conferences, meetings, and delegation visits in the
past, but the recent conference carries a unique façade never seen before. Several
special features of the recent Pakistan-Saudi Arabia Investment Conference are
highlighted below:
▪ The conference was conducted to enhance collaboration between the two
countries regarding business operations, joint ventures, and investment
opportunities. No discussions were held related to loans, grants, aids, or similar
passive financial models.
▪ A detailed and deliberate meeting plan was prepared in advance, focusing on
tangible investment opportunities available in Pakistan for Saudi Arabia to
capitalize on. This resulted in the execution of objectively concluded meetings,
with the Saudi side clear on what was to be offered and on what terms.
▪ A detailed pitch book was prepared highlighting investment opportunities in
various sectors in Pakistan, including agriculture, information technology,
telecommunications, petroleum, energy, tourism, and human resource
development.
▪ The pitch book served as a teaser for available projects in the mentioned sectors.
Each project was further broken down into various parts, including its description,
market dynamics, unique value proposition, business model, and investment
valuation. Key factors such as likely output, infrastructure development
requirements, and manpower needs were outlined for each project, along with a
brief financial layout including Internal Rate of Return, payback period, and likely
project duration.

Towards the conference's conclusion, it was mutually agreed to make the

frequency of such meetings and conferences regular, at least once every month.
Both countries also agreed to establish joint working groups for each sector to
monitor progress on agreed-upon projects.

▪ During the breakout sessions, experts, officials, and corporate sector leaders
from both countries convened in dedicated lounges for detailed discussions on
the available projects.
▪ With Saudi Arabia's confidence in Pakistani business models and opportunities
improving, other Gulf countries are likely to follow suit. Pakistan has already
entered into a number of Memorandums of Understanding (MoUs) with Middle
Eastern countries. It is likely that with Saudi Arabia as an investment partner with
Pakistan, those countries will also expedite the finalization of deals and
agreements.
▪ The world perceives Pakistan's seriousness of purpose through SIFC, which is
moving in a straightforward direction with a single-point agenda: improving the
economy. In just a little less than a year, SIFC has proven its mettle by identifying
problem areas in economic development, highlighting key sectors critical to
achieving economic growth objectives, and taking baby steps towards
development in those sectors.
Underlying Opportunities
The conference holds great significance due to the various geopolitical and
geostrategic dynamics affecting Pakistan in the region and globally. This unique
environment presents a fleeting opportunity, the failure to seize which could result
in substantial losses for Pakistan. Some of these dynamics include:
▪ Pakistan is grappling with a burdensome debt, which is draining its economy and
posing a significant obstacle to development. The country struggles to generate
sufficient funds to repay loan installments burdened with hefty interest rates,
hindering progress towards forward-leaning development and growth.
▪ Saudi Arabia and other countries in the Middle East, Asia, and Africa are striving
to secure food supplies for their populations in the coming years. As an agrarian
nation embarking on its second agricultural revolution, Pakistan offers
opportunities for addressing food security concerns in these countries.
▪ Pakistan possesses untapped treasures in the energy, mining, mineral, and IT
sectors, which serve as lifelines for industries worldwide.
▪ India's religious extremism and terrorist activities through proxies in various
countries are tarnishing its international reputation, resulting in the severing of
business ties and collaborations with India. Pakistan can leverage this situation by
offering opportunities to countries critical of India, such as Canada, China, and
select Asian and European nations, providing them with markets for their goods
and investment opportunities.
▪ Escalating tensions in Palestine have sparked global reactions, leading to mass
boycotts of Israeli products and demands for an end to atrocities in Gaza. This
places a responsibility on all Muslim countries, including Pakistan, to condemn the
situation and attract investment from other nations while developing domestic
products to achieve self-sufficiency, growth, and development.
In previous articles, I have mentioned that the SIFC is expected to help Pakistan
emerge from its current dire situation within six to eight years. However,
considering the pace at which the organization is operating and the initiatives by
the government to overcome economic hurdles, it is anticipated that SIFC's main
objectives will be achieved within a relatively shorter timeframe.
Article was read 148 times

Sign in to rate article

Comments

Sign in to comment on article.

Lt Col Rizwan Mir, TI (M), (R)

The author is a PhD scholar in

Management Sciences with
extensive experience in Project
Management.

RECENT ARTICLES

 SIFC, From Vision to Reality

(Part III)
 SIFC, From Vision to Reality
(Part I)
 Pakistani Youth: The Driving
Force for National Progress
 Unlocking Agricultural
Prosperity: The Land
Information and Management
System Initiative
 Special Investment
Facilitation Council: Mandate,
Functioning, and Progress

Advertisements