Pakistan is the 25th-largest economy in the world. The country has a sound manufacturing base and well-developed agriculture and service sectors. Additionally, the country is abundantly blessed with natural resources.
It is the sixth-most populated country in the world, and 60 percent of the population is young. Geographically, it is ideally located between east and west.
All these factors make Pakistan ideally placed to become one of the world’s leading trade partners.
Despite having all the positive essentials of an export hub, annual global exports from Pakistan are only about $20 billion, much lower than its potential. This untapped potential provides the best opportunity for investors across the globe looking for maximum returns on their investments.
The following are some of the best avenues for investment in the emerging Pakistan.
The textiles sector is the mainstay of our exports sector which, together with cotton and yarn, accounts for more than half the total value of Pakistan’s annual exports.
Pakistan is one of the few countries where the complete value chain of textiles manufacturing exists. Pakistan annually produces more than 11 million bales of cotton. The cotton is domestically ginned and then spun into yarn by a robust spinning sector. Weaving, knitting and processing sectors produce a wide variety of fabrics that are stitched to produce world-class garments.
The blossoming fashion industry renders ultimate value-added products. However, some of the subsectors are not completely integrated. Due to value-chain constraints, Pakistan exports more than $3.5 billion of cotton, yarn and woven fabric each year.
These are relatively low value-added products and the proper placement of value-chain addition through investment can bring three to four-fold export proceeds and a handsome return for investors.
Similar potential for huge value-addition exists in other sectors. Gems and jewelry are one example.
Emeralds mined from the Swat region are considered some of the best in the world. Careful mining of precious and semi-precious stones through advanced equipment, and artful cutting, polishing and rendering into jewelry, immensely increases the value of finished products. There is equally great scope for product diversification, as is the potential for raising new sectors.
Pakistan has overcome to a great extent its short-term issues affecting the exports sector. The law and order situation has long been restored to normalcy. The success of the Expo Pakistan event in November 2017 in Karachi is clear testimony to this.
Hundreds of business delegates from throughout the world participated in this mega event and discussed and concluded business agreements with their Pakistani counterparts. In view of the interest of investors and businessmen traveling to Pakistan, the government has recently relaxed its business visa regime.
Great emphasis has been laid on improving energy availability. More than 10,000 MW of electricity is being added in the national grid as a result of recent initiatives. After operationalization of all energy-generating projects, there will be surplus electricity. Already the situation regarding industrial load shedding has been markedly improved. In addition to this, the State Bank of Pakistan has recently made adjustments to its exchange rate regime to make it more attractive to exporters.
These interventions have started to yield positive results. After registering negative growth over the past four years, exports from Pakistan are picking up. The first six months of the current financial year have seen a more than 11 percent increase in our exports, and the trend is continuing. February 2018 registered the highest month-on-month increase of 16 percent in the dollar value of exported commodities.
Apart from immediate measures, the government is pursuing a comprehensive plan of medium to long-term interventions aimed at realizing the true export potential of Pakistan.
To enhance the competitiveness and strengthen the manufacturing base, a number of schemes have been launched to help industry modernize its machinery; improving access to utilities; enhancing labor productivity; and ensuring quality infrastructure. Apart from schemes for the general industry, the government has incentivized the setting up of Special Economic Zones (SEZs) that additionally provide the benefits of subsectors integration, improved connectivity and economies of scale.
In addition to already notified SEZs, the government has recently announced the setting up of nine more zones along the China-Pakistan Economic Corridor to better leverage emerging opportunities in the region.
Product diversification and branding are also being given attention. Dedicated funds have been set up aimed at promoting research and development. Pakistan has elaborate laws and the necessary organizational setup for the effective protection of intellectual property rights to provide a conducive environment for promotion innovation.
Pakistan is also moving toward achieving more market diversification and improved market access. The “Look Africa” plan is a part of such efforts. Pakistan has achieved some notable successes in the field of trade diplomacy in 2018. In January, successful negotiations earned unilateral concessions by Indonesia in 20 tariff lines. In February this year, Pakistan successfully had the GSP Plus facility reviewed by the EU Parliamentary Committee on International Trade. The committee expressed satisfaction over the progress made by Pakistan and decided in favor of the continuation of the facility.
In short, Pakistan is poised and ready to become a regional hub of connectivity, investment and productivity and the coming days will witness the emergence of this nuclear power as a significant player on the global trade landscape.
“Emerging Pakistan” is the best place for all investors, specially investors from Saudi Arabia.
Pakistan’s exports potential: Growth opportunities and strategy
Pakistan’s exports potential: Growth opportunities and strategy
Oil Updates — prices climb $1 as US court blocks Trump tariffs
SINGAPORE: Oil prices rose by about $1 a barrel on Thursday after a US court blocked most of President Donald Trump’s tariffs, while the market was watching out for potential new US sanctions curbing Russian crude flows and an OPEC+ decision on hiking output in July.
Brent crude futures climbed $1.03, or 1.6 percent, to $65.93 a barrel. US West Texas Intermediate crude advanced by $1.06, or 1.7 percent, to $62.90 a barrel at 08:30 a.m. Saudi time.
A US trade court on Wednesday ruled that Trump overstepped his authority by imposing across-the-board duties on imports from US trading partners. The court was not asked to address some industry-specific tariffs Trump has issued on automobiles, steel and aluminum using a different statute.
The ruling buoyed risk appetite across global markets which have been on edge about the impact of the levies on economic growth, but analysts said the relief may only be temporary given the Trump administration has said it will appeal.
“But for now, investors get a breather from the economic uncertainty they love to loathe,” said Matt Simpson, an analyst at City Index in Brisbane.
On the oil supply front, there are concerns about potential new sanctions on Russian crude. At the same time, the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, could agree on Saturday to accelerate oil production hikes in July.
“We’re assuming the group will agree on another large supply increase of 411,000 barrels per day. We expect similar increases through until the end of the third quarter, as the group increases its focus on defending market share,” said ING analysts in a note.
Adding to supply risks, Chevron has terminated its oil production and a number of other activities in Venezuela, after its key license was revoked by the Trump administration in March.
Venezuela in April canceled cargoes scheduled to Chevron citing payment uncertainties related to US sanctions. Chevron was exporting 290,000 barrels per day (bpd) of Venezuelan oil or over a third of the country’s total before that.
“From May through August, the data points to a constructive, bullish bias with liquids demand set to outpace supply,” Mukesh Sahdev, Global Head of Commodity Markets at Rystad Energy, said in a note, as he expects demand growth outpacing supply growth by 600,000 to 700,000 bpd.
Later on Thursday, investors will be watching for the weekly reports from the American Petroleum Institute (API) and the Energy Information Administration, the statistical arm of the US Department of Energy.
According to the market sources familiar with the API data, US crude and gasoline stocks fell last week while distillate inventories rose.
Meanwhile, a wildfire in the Canadian province of Alberta has prompted the temporary shutdown of some oil and gas production which could reduce supply, and forced residents of a small town to evacuate.
OPEC+ moves to set 2027 production baselines
RIYADH: OPEC+ announced on Wednesday that it will establish a framework to determine new oil production baselines for 2027, marking a significant step in its long-term planning, said an official statement.
The alliance — comprising the Organization of the Petroleum Exporting Countries and partners including Russia—has been negotiating revised production baselines for several years. These baselines serve as reference points from which member states adjust their output levels.
According to the statement issued following the group’s meeting, said it had tasked the OPEC Secretariat with developing a mechanism to assess each country’s maximum production capacity. These assessments will form the basis for 2027 production targets across all member nations.
Since 2022, the group has implemented three tiers of output cuts. Two remain in place through the end of 2026, while the third is being gradually phased out by eight participating countries. No changes were made to the group’s current production policy at Wednesday’s session.
Due to the sensitive nature of the discussions, all sources spoke on condition of anonymity.
The 2027 baselines, once finalized, are expected to guide production policy after the current round of cuts expires.
Oil prices, which dipped below $60 per barrel in April—the lowest level in four years—following OPEC+’s decision to accelerate May output and amid trade tensions triggered by US tariffs, have since rebounded to around $65.
Saudi Arabia launches advanced manufacturing center to boost industrial innovation
JEDDAH: Saudi Arabia has launched the Advanced Manufacturing and Production Center, a key initiative aimed at accelerating the Kingdom’s industrial transformation through the adoption of advanced technologies and sustainable practices.
Unveiled on May 28, the center is set to play a central role in promoting efficiency, flexibility, and growth within the manufacturing sector. It will utilize technologies associated with the Fourth Industrial Revolution to localize production and enhance Saudi Arabia’s competitiveness on the global stage.
The initiative also supports strategic industries while aligning with the objectives of Saudi Vision 2030, the country’s long-term plan to diversify its economy. A major focus is encouraging private sector collaboration to speed up the integration of emerging technologies into industrial operations.
The launch supports the National Industrial Strategy, introduced in October 2022, which aims to increase the number of factories in the Kingdom to approximately 36,000 by 2035. The strategy is designed to attract investment, scale up local production, and strengthen non-oil exports.
The Ministry of Industry and Mineral Resources is overseeing several projects to advance the Kingdom’s industrial and logistical infrastructure, positioning Saudi Arabia as a key player in global manufacturing and trade.
“Adopting the latest industrial technologies raises the efficiency of our industrial sector and enhances its competitiveness regionally and globally,” said Khalil bin Ibrahim bin Salamah, deputy minister of industry and mineral resources for industrial affairs, in a post shared by the ministry on X.
In an accompanying video, the ministry reiterated the center’s significance in meeting national goals: “The Advanced Manufacturing and Production Center opens doors to industrial investment opportunities and stimulates the sector to adopt new manufacturing technologies within industrial facilities.”
The center is supported by several initiatives and programs, including the Future Factories Program, which aims to modernize 4,000 factories across the Kingdom. The FFP focuses on integrating advanced manufacturing systems to boost efficiency and build more resilient supply chains—particularly in critical sectors such as food and petrochemicals.
According to its official website, the center serves as a hub for industrial innovation, providing consultancy services, training, and technological solutions. It is dedicated to fostering sustainability and competitiveness across the manufacturing sector.
Through these efforts, the center is expected to significantly contribute to Saudi Arabia’s Vision 2030 goals by localizing high-tech capabilities, attracting investment, and advancing the industrial sector’s role in the nation’s economic diversification.
Closing Bell: Saudi main index rises to close at 11,052
RIYADH: Saudi Arabia’s Tadawul All Share Index advanced on Wednesday, closing higher by 127.58 points, or 1.17 percent, to reach 11,052.76, reflecting broad market optimism.
Trading activity remained robust, with a total turnover of SR4.57 billion ($1.21 billion). Of the listed stocks, 202 posted gains while 44 declined.
The Kingdom’s parallel market, Nomu, also recorded gains, rising 340.91 points, or 1.28 percent, to close at 26,932.95. The market saw 48 advancing stocks against 34 decliners.
Meanwhile, the MSCI Tadawul 30 Index climbed 15.12 points, or 1.08 percent, ending the session at 1,413.70.
Fawaz Abdulaziz Alhokair Co. emerged as the session’s top performer, with its share price jumping 5.77 percent to SR16.50.
Ataa Educational Co. and Kingdom Holding Co. followed closely, gaining 5.46 percent and 5.22 percent to close at SR61.80 and SR8.66, respectively.
On the downside, United Carton Industries Co. registered the steepest decline, falling 4.87 percent to SR46.85. Banan Real Estate Co. dropped 2.4 percent to SR4.48, while Nama Chemicals Co. slipped 1.78 percent to SR27.55.
On the announcements front, Saudi AZM for Communication and Information Technology Co. disclosed it has submitted a request to transfer its listing to the main market.
Additionally, the initial public offering for Flynas Co. began on May 28 and will conclude on June 1. The offering is priced at SR80 per share, with a retail tranche comprising 10.25 million shares. According to a statement, BSF Capital is the lead manager.
Alkathiri Holding Co. announced that its subsidiary has signed a 50-year lease agreement valued at SR143 million with the Asir Region Municipality to develop a commercial and hospitality project in the city of Abha.
According to a statement published on the Saudi stock exchange, the project will feature a four-star hotel with a capacity of 180 keys, alongside retail and entertainment facilities. The development aims to boost tourism and enhance commercial services in the Asir region.
The lease will officially begin upon the land handover by the Investment Committee of the Asir Region Municipality.
Shares of Alkathiri Holding closed Wednesday’s trading session at SR2.06, marking a 1.96 percent gain.
In a separate disclosure, Mufeed Co. announced that its board of directors has recommended to the ordinary general assembly the transfer of its statutory reserve balance — totaling SR3.49 million, as reported in the financial statements for the year ended Dec. 31, 2024 —to retained earnings.
Saudi Arabia’s Asir region revitalizes 95% of stalled projects
- Asir is a vast region in the Kingdom with a population exceeding 2 million people
- Interest from global players seeking early opportunities in the region’s evolving landscape has grown
ABHA: Saudi Arabia’s Asir region has successfully revitalized 95 percent of its previously delayed project, an important milestone that is strengthening investor confidence as the region moves forward with SR29 billion ($7.73 billion) worth of initiatives across various sectors.
In an interview with Arab News, Hashim Al-Dabbagh, CEO of Asir Region Development Authority, stated that a dedicated committee, chaired by Asir Gov. Prince Turki bin Talal, was formed several years ago to tackle long-standing investment challenges that had stalled progress in the region.
“The total number of cases that have been brought to this committee to address has been 63, all brought to the table,” Al-Dabbagh said.
He continued: “Of these 63 cases that have been brought to this committee to address and to solve, 60 cases have been solved, and three are in the pipeline right now, and they’re working on them, and they’re going to solve them relatively soon.”
Of the 60 resolved, 57 were concluded with outcomes that satisfied investors, reflecting a resolution rate of nearly 95 percent.
“This committee and the work that they have done has created some very positive vibes across the investment ecosystem in Saudi Arabia, which you sense in this forum because there are some very large investors that are coming to Asir, some coming back to Asir which had not been interested in this region in the past,” Al-Dabbagh said.
The board operates in collaboration with various public and private entities, including ASDA, the Ministry of Investment, the Ministry of Tourism, the Tourism Development Fund, and King Khalid University, ensuring a unified approach to accelerating investor activity in the region.
This resolution mechanism plays a key role in supporting the region’s development strategy, which focuses on unlocking investment potential across various sectors.
“First of all, we have a strategy that drives everything that we are doing,” Al-Dabbagh said.
He added: “The strategy has been approved by the center of government, and it says that Asir should be a year-round preeminent destination, so already we know that we need to focus on the tourism sector and complementary and adjacent sectors to the tourism sector. That’s one, and that gives us a lot of momentum in working with the government ecosystem and the private sector.”
Al-Dabbagh emphasized that Asir is more than just a tourism destination, noting that it is a vast region in the Kingdom with a population exceeding 2 million people.
“Within the Asir Development Authority, we have a whole department called Economic Development Department, and they are working diligently this year on sectoral studies across the board.”
He added: “This includes, obviously, tourism-related sectors, but also other ones, so just as an example, we are looking at sports, we are looking at construction. We’re looking at fisheries and agriculture. We’re looking at renewable energy. We’re looking at mining among other sectors.”
The authority is also aligning its economic strategy with educational institutions to ensure the region’s workforce is equipped to meet the demands of upcoming sectors.
“We are working closely with King Khalid University, the TVTC (Technical and Vocational Training Corp.), Bishop University, and other educational institutions to align the strategies and to make sure that their graduates are able to find jobs in the opportunities that are going to be realized as we realize this strategy,” he said.
On attracting investments, Al-Dabbagh stated: “What I call the investment ecosystem in Asir, it’s the framework that we use to assess investments, is comprised of three components. The first component is the Invest in Asir committee, and that’s headed by Prince Turki in his capacity as the chairman of the Aseer Development Authority and includes all the public and private sectors.”
He explained that the region offers a compelling opportunity for early movers due to its untapped potential, strategic government backing, and the ability to enter key sectors before they reach full maturity, providing investors with a critical advantage in shaping long-term development.
“Asir relative to those mature, tourism destinations, offers relatively less mature areas, so when they’re coming in, they’re coming in early and they’re going to have a ... not a first mover advantage, but an early mover advantage compared to people that are going to see this place for five years or 10 years down the road when all these incumbents are already on the ground.”
Attracting FDIs
Foreign direct investment is also gaining momentum in Asir, with growing interest from global players seeking early opportunities in the region’s evolving landscape.
“One of the speakers in today’s forum was Fatih (who is managing partner of FTG Development), and they are looking at an investment worth billions in Asir. That is just one example, and foreign direct investors, they look for successful local investors to partner with,” Al-Dabbagh said.
He concluded: “Our doors are open. We’re very happy to meet with the investors from anywhere.”
