ISLAMABAD: Minister for Finance and Revenue Muhammad Aurangzeb met Saudi Ambassador to Pakistan Nawaf bin Saeed Al-Malki on Wednesday and discussed joint ventures and business collaborations as well as steps Islamabad is taking as it navigates a tough reforms agenda mandated by the International Monetary Fund (IMF).
Pakistan and Saudi Arabia enjoy strong trade, defense and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and serves as the top source of remittances to the cash-strapped South Asian nation.
In February 2019, Pakistan and Saudi Arabia inked investment deals totaling $21 billion during a visit by Saudi Crown Prince Mohammed bin Salman to Islamabad. The agreements included about $10 billion for an Aramco oil refinery and $1 billion for a petrochemical complex at the strategic Gwadar Port in Balochistan.
Both countries have been working in recent months to increase bilateral trade and investment, and the Kingdom in April this year reaffirmed its commitment to expedite an investment package worth $5 billion for Pakistan.
“Aurangzeb expressed deep appreciation for Saudi Arabia’s consistent economic support to Pakistan, while highlighting the renewed interest shown by Saudi investors in pursuing joint ventures and business collaborations with Pakistan’s private sector,” Radio Pakistan said on Thursday. 
“Aurangzeb noted the significant outcomes of the high-level business delegation’s visit from Saudi Arabia to Pakistan in May, aimed at exploring investment opportunities, expanding bilateral cooperation, and scaling up partnerships across diverse sectors.”
The minister also outlined Pakistan’s “positive” economic trajectory, citing key indicators such as currency stabilization, reduced inflation, a surge in remittances, prudent management of the current account deficit and foreign exchange reserves sufficient to cover two months of imports.
“The Minister emphasized that structural reforms are pivotal for ensuring sustainable economic growth and stability, forming a cornerstone of the government’s policy agenda,” Radio Pakistan said. 
The report said Al-Malki “commended” the government of Pakistan’s efforts in implementing structural and institutional reforms and reiterated the Kingdom’s “unwavering commitment to contributing to Pakistan’s economic growth.”
“The Ambassador also acknowledged the immense potential for investment and business opportunities between the two countries,” Radio Pakistan said. “He indicated that a Saudi business delegation is expected to visit Pakistan in the coming months to further explore areas for joint ventures and collaborative investments.”
Aurangzeb has said in recent weeks Pakistan will focus on meeting its external financing needs by speaking with foreign governments and lenders to draw foreign investment as well as seeking loan rollovers. The government is also seeking to focus on more sustainable forms of external financing such as direct investment and climate financing.
Pakistan and the IMF reached an agreement for a new 37-month $7 billion loan program in July. The IMF has said the program is subject to approval from its executive board and obtaining “timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners.”
Last month, Bloomberg reported Pakistan had secured commitments from China, Saudi Arabia and the United Arab Emirates to roll over debt for a year, a boost for Islamabad as it awaits final approval of the IMF loan program.
Rollovers or disbursements on loans from Pakistan’s long-time allies, in addition to financing from the IMF, have helped Pakistan meet its external financing needs in the past.
Tough conditionalities placed by the IMF, such as raising tax on agricultural incomes and lifting electricity prices, have unleashed street protests and prompted concerns about poor and middle class Pakistanis grappling with rising inflation and the prospect of higher taxes.

ISLAMABAD: A high-level delegation of Chinese companies visiting Islamabad this week has shown “keen interest” in building a special economic zone (SEZ) in the northern Gilgit-Baltistan region, state-run Radio Pakistan reported on Thursday.
GB is administered by Pakistan as an administrative territory and consists of the northern portion of the larger Kashmir region, which has been the subject of a dispute between India and Pakistan since 1947. The impoverished, remote and rugged mountainous territory borders Afghanistan and China and is the gateway of the $65 billion China-Pakistan Economic Corridor (CPEC) infrastructure plan. But the region has so far reaped few rewards.
“Pak-China border region has significant economic and cultural importance, with trade and cultural exchanges between the two regions dating back centuries,” Pakistani Minister for Kashmir and GB Affairs, Amir Muqam, was quoted by Radio Pakistan as saying after he hosted the Chinese delegation led by renowned economist Yuan Jianmin Senior in Islamabad.
Muqam said investing in Gilgit Baltistan could benefit both China and Pakistan and foster economic growth, regional connectivity and a stronger partnership.
“The delegation showed keen interest in construction of a Special Economic Zone in Gilgit Baltistan,” Radio Pakistan added.
GB locals fought pro-India forces and opted to join Pakistan in 1948. But since then Gilgit-Baltistan has not been granted full inclusion by the Pakistani constitution over fears doing so would jeopardize Islamabad’s international stance that all of Kashmir is disputed territory.
The local assembly has few powers. Pakistan’s National Assembly and Senate have no representation from Gilgit-Baltistan, and the region receives only a fraction of the national budget.
The CPEC project had aimed to bring development to the region but that has not happened, a consequence, many residents believe, of the lack of local representation at national levels.
New roads, two hydroelectric power plants, a fiber-optic Internet line, and a special economic zone to boost industrial activities have all been proposed as part of the CPEC project since 2013, but none have been materialized so far.
The only substantial project from the China-Pakistan partnership has been the construction of the Karakoram Highway, completed decades ago.