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Saudi investment minister says 27 agreements worth $2 billion to be signed with Pakistan today

Saudi Arabia’s Investment Minister Khalid bin Abdulaziz Al-Falih speaks during the inauguration of Pak-Saudi Business Forum 2024 in Islamabad on October 10, 2024. (Photo courtesy: Urdu News)
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Updated 18 min 31 sec ago
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Saudi investment minister says 27 agreements worth $2 billion to be signed with Pakistan today

  • Al-Falih says Riyadh wants to give large share of $200 billion in annual construction, material procurement contracts to Pakistan
  • Al-Falih said trade between Pakistan and the Kingdom had increased by 80% from $3 billion in 2019 to $5.4 billion dollars currently
Updated 18 min 31 sec ago
SAIMA SHABBIR

ISLAMABAD: Saudi Arabia’s Investment Minister Khalid bin Abdulaziz Al-Falih said on Thursday 27 agreements and memorandums of understanding (MoU) worth $ 2 billion would be signed today, Thursday, with Pakistan, and the Kingdom hoped to give a large share of $200 billion in annual construction and material procurement contracts to Islamabad in the future. 
Al-Falih was addressing a joint business forum in Islamabad during a three-day visit with a delegation of over 130 members, including representatives from Saudi companies specializing in energy, mining, minerals, agriculture, business, tourism, industry, and manpower.
“Pakistani Prime minister will be speaking to the Saudi delegation later this evening and will be presiding over an exchange of agreements and MOUs totaling 27 that will be signed throughout the day,” Al Falih said as he addressed the Pak-Saudi Business Forum 2024. 
He said many of the $2 billion agreements had already been negotiated and agreed upon.
The investment minister said Saudi Arabia, the largest construction site in the world, would in the next few years be awarding construction and material procurement contracts to the tune of around $1.8 trillion.
Saudi Arabia is set to become the world’s largest construction market as the Kingdom pours vast amounts of money into projects aimed at overhauling and diversifying the economy. The country’s total construction output value is forecast to reach $181.5 billion by the end of 2028, up almost 30 percent from 2023 levels, according to a 2024 report by global property consultancy Knight Frank.
“Last year, the value of construction and EPC [engineering, procurement, and construction] procurement, including materials, was $150 billion, this year that’s $180 billion and it will be about $200 billion annually of contract and material procurement awards year after year,” Al-Falih said. 
“Fortunately for our partners here in Pakistan, a lot of the input into those contracts is going to be imported and we want it to be imported from Pakistan. All things being equal, in fact, we will compromise a little bit to make it come from Pakistan.”
Al-Falih said trade between Pakistan and the Kingdom had increased by 80 percent from $3 billion in 2019 to $5.4 billion dollars currently, adding that Saudi Arabia was “encouraged” by the number of Pakistani investment licenses, which had more than doubled in the last couple of years, reaching 2,000 Pakistani investors in Saudi Arabia. 
“The Foreign Direct Investment (FDI) stock in Saudi Arabia of Pakistani investment is already exceeding $1.6 dollars and we are committed to and extremely encouraged by the announcement by His Royal Highness the Crown Prince, committing the front end of Saudi investment into Pakistan, which is $5 billion,” the minister said.
Al-Falih’s visit to Islamabad comes as Pakistan seeks closer cooperation in trade, infrastructure, energy and other sectors with friendly countries and regional allies, with the aim to attract foreign investment and shore up its $350 billion economy, beset by a prolonged economic crisis that has drained foreign exchange reserves and weakened the national currency.
Pakistan and Saudi Arabia in particular have been working closely in recent months to increase bilateral trade and investment, with Crown Prince Mohamed bin Salman reaffirming the Kingdom’s commitment this year to expedite a $5 billion investment package for the South Asian country.
Last month, the International Monetary Fund’s board approved a long-awaited $7 billion bailout deal for Pakistan’s struggling economy. The IMF said the new program will require “sound policies and reforms” to strengthen macroeconomic stability and address structural challenges alongside “continued strong financial support from Pakistan’s development and bilateral partners.”
“STRATEGIC PARTNERSHIP”
Addressing the business forum, Pakistani Deputy Prime Minister Ishaq Dar said Pakistan had vast potential in sectors such as mining, information technology, agriculture, and renewable energy, inviting Saudi businesses to participate in “mutually beneficial” opportunities and ventures.

“The MOUs signed today include a wide range of sectors, mainly semiconductors, energy, livestock, manpower and IT and these MOUs are the result of dedicated follow-up by your side and our side, public and private sector entities, of the direction given by the leadership of both countries,” Dar said.
The deputy PM said Pakistanis were “eagerly awaiting” the visit of the Saudi Crown Prince Mohammed bin Salman to Pakistan. 
“This visit will not only further strengthen and put a strong bond in our strategic partnership but will also be a way for more collective efforts in various sectors we are currently located,” he added.

Inaugurating the forum, Pakistan’s Commerce Minister Jam Kamal said Pakistan would organize a single country exhibition in Jeddah in 2025 to promote its trade potential and attract investment.
“Pakistan’s exports are only two percent of Saudi Arabia’s total trade, and an increase in Pakistani exports to the Kingdom is essential,” he said, adding that Pakistani companies could play an important role in the construction, IT and agriculture sectors in the Kingdom.

Topics: Pakistan Saudi Ties Saudi investment in Pakistan Saudi Investment Minister Khalid Al-Falih

Pakistan to curb movement of Chinese nationals, diplomats during SCO summit

Updated 10 October 2024
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Pakistan to curb movement of Chinese nationals, diplomats during SCO summit

  • Balochistan Liberation Army separatist group claimed responsibility for attack in Karachi in which two Chinese nationals killed 
  • Meeting of the SCO, which comprises nine full members including China, India, Iran, Russia, will take place in Islamabad on Oct. 15-16
Updated 10 October 2024
Arab News Pakistan

ISLAMABAD: Pakistani authorities are seeking to curb the movements of Chinese citizens during the Shanghai Cooperation Organization meeting next week because of a security risk from militant groups targeting them, according to three security officials and an internal security note.
The decision came after two Chinese engineers were killed in a bombing near Pakistan’s Karachi international airport on Sunday. The suicide bombing was claimed by separatist militant group, the Baloch Liberation Army (BLA). 
The meeting of the SCO, which comprises nine full members, including China, India, Iran and Russia, is scheduled for Oct. 15 and 16 in Islamabad. Chinese Premier Li Qiang is expected to arrive in the city prior to the meeting.
“Orders have been received from concerned authority that Chinese move of all types including intra-city/ inter-city/ airport etc to be ceased from 14 to 17 Oct 24 in connection with SCO summit and various delegations visit,” the security alert, shared with several Pakistani security agencies and seen by Reuters, said.
Three top security officials who received the alert said it had also been conveyed to Chinese authorities.
“All concerned to make sure that Chinese are conveyed it in advance so that important moves are adjusted before that. No violations will be accepted during this period,” the alert said.
The Chinese embassy in Islamabad and Pakistan’s interior ministry did not respond to a Reuters request for comment.
The bombing was the latest in a string of attacks against Chinese nationals in Pakistan over the last four years, including a March suicide bombing that killed five Chinese engineers working on a hydropower project.
Beijing has called on Islamabad publicly to implement more stringent security measures.
BLA, the biggest of several ethnic insurgent groups that has fought the federal government for decades, targets Chinese interests — including the strategic port of Gwadar on the Arabian Sea — as it accuses Beijing of helping Islamabad exploit local resources. It has previously killed Chinese citizens and attacked China’s consulate in Karachi.
The port development is part of Beijing’s $65 billion investment in road, rail and infrastructure building under President Xi’s Belt and Road Initiative (BRI).
The security officials said senior staff responsible for Chinese security in Karachi had been removed from service following the latest attack, which took place in a highly secure area. 
Pakistan’s interior ministry is primarily responsible for the security of Chinese nationals and their interests.
“Let’s wait two, three days, things will be clear,” Interior Minister Mohsin Naqvi told a press conference in Islamabad when asked about the security lapse.
Separately, as part of SCO summit security arrangements, a foreign office letter requested diplomats and UN personnel residing in Islamabad to restrict their movements and remain confined to the Diplomatic Enclave and Red Zone areas during the conference days. 
The Diplomatic Enclave houses foreign embassies and residents of diplomats working in Pakistan and is located inside the Red Zone, home to important government buildings like the Prime Minister House, President House, National Assembly and the Supreme Court.
“In this regard, it is advised that all diplomats may consider limiting their movements during this period [Oct. 15-16], both within and outside the city,” the ministry of foreign affairs said in a notification this week. “It is further advised that activities be confined primarily to the diplomatic enclave and Red Zone areas.”
The notice said the Pakistani government had put in place “heightened” security measures for the safety of incoming dignitaries and delegates to ensure the summit’s success, urging diplomatic missions to follow daily traffic updates.
“The Ministry appreciates the understanding and cooperation of all diplomatic missions ... and looks forward to their support in ensuring the success of this [SCO] event,” it added. 
With inputs from Reuters

Topics: Pakistan foreign office Shanghai Cooperation Organisation (SCO)

Head of Pakistan’s Punjab calls for diplomacy with India to tackle smog

Updated 10 October 2024
Reuters
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Head of Pakistan’s Punjab calls for diplomacy with India to tackle smog

  • Pakistani city of Lahore, India’s capital Delhi are among most polluted cities in the world
  • Rising air pollution can cut life expectancy by more than five years per person in South Asia
Updated 10 October 2024
Reuters

ISLAMABAD: The chief minister of Pakistan’s most populous province called for “climate diplomacy” with neighbor and arch-rival India to combat smog ahead of the winter months, which are accompanied by dangerous levels of pollution in both nations.
“We should talk to them, this is called climate diplomacy. We should do it with India,” said Chief Minister Maryam Nawaz Sharif, adding the two nations needed to coordinate actions to temper toxic smog, which winds carry across the border.
Relations between India and Pakistan have gone through periods of thaw but have been largely frozen since they downgraded diplomatic ties in tit-for-tat moves in 2019.
When cooler temperatures take hold, pollution spirals. The Pakistani city of Lahore and India’s capital Delhi are among the most polluted cities in the world.
Air quality deteriorates in cooler months, as temperature inversion traps pollution closer to the ground, packing hospital wards with patients with respiratory problems.
Rising air pollution can cut life expectancy by more than five years per person in South Asia, one of the world’s most polluted regions, according to a report published last year which flagged the growing burden of hazardous air on health.
India’s foreign minister will visit Pakistan next week to attend the Shanghai Cooperation Organization summit, the first such visit in nearly a decade. However India’s government has ruled out discussions of bilateral relations during the visit.

Topics: Pakistan Smog

World Bank raises South Asia growth forecast to 6.4% on India demand, quicker recoveries in Pakistan

Updated 10 October 2024
Reuters
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World Bank raises South Asia growth forecast to 6.4% on India demand, quicker recoveries in Pakistan

  • The upward revision confirms South Asia as the fastest growing emerging economy region monitored by the World Bank
  • Bank projected Pakistan’s economy would grow by 2.8% in current fiscal year on recovery in manufacturing, easing monetary policy
Updated 10 October 2024
Reuters

NEW DELHI/LONDON: The World Bank raised its growth forecast for South Asia to 6.4 percent in 2024 from an earlier estimate of 6.0 percent, citing the strength of domestic demand in India and quicker recoveries in crisis-hit countries such as Sri Lanka and Pakistan.
India’s economic growth forecast for the current fiscal year, ending in March 2025, was revised to 7 percent year-on-year, up from April’s estimate of 6.6 percent, helped by a rebound in agricultural output and increased private consumption.
“You have an emerging class of consumers in India that’s driving the economy forward, you have recoveries from crises in Sri Lanka and in Pakistan, you also have a tourism-led recovery in Nepal and Bhutan,” Martin Raiser, World Bank Vice President for South Asia, told Reuters.
The upward revision confirms South Asia as the fastest growing emerging economy region monitored by the World Bank. The Washington-based lender projects South Asia will see robust 6.2 percent growth annually for the following two years.
Raiser said there was “significant upside potential” to growth with greater integration of South Asian countries into the global economy, but countries needed to stick with economic reform programs to sustain momentum.
On Wednesday, India’s central bank maintained its GDP growth forecast at 7.2 percent for the current fiscal year and shifted its policy stance to neutral.
The World Bank projected Pakistan’s economy would grow by 2.8 percent in the current fiscal year, which started in July, an increase from the previous estimate of 2.3 percent, aided by a recovery in manufacturing and easing monetary policy.
Sri Lanka, which is clawing its way out of a sovereign debt default and its worst economic crisis in decades, saw the biggest upward revision, with growth expected to come in at 4.4 percent this year and 3.5 percent in 2025.
Nepal’s growth forecast was raised to 5.1 percent from 4.6 percent for the 2024/25 fiscal year beginning mid-July, and Bhutan’s to 7.2 percent from 5.7 percent.
But Bangladesh’s growth forecast was downgraded to 4.0 percent from 5.7 percent for the fiscal year 2024/25, spanning from July to June, reflecting a slowdown in garment exports amid recent social unrest.
The World Bank recommended the region should boost women’s labor force participation — currently the lowest globally at 32 percent. Raising employment among women to levels comparable to those among men could raise output by as much as one-half in the long term, the report said.
“Bringing more women into the labor force could add significantly to the production potential,” said Raiser.

Suspected militants shoot police in vehicle in northwest Pakistan, killing 2 officers

Updated 10 October 2024
AP
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Suspected militants shoot police in vehicle in northwest Pakistan, killing 2 officers

  • Attack happened in Tank, a city in Khyber Pakhtunkhwa province bordering Afghanistan
  • No group has claimed responsibility, but suspicion is likely to fall on Tehreek-e-Taliban Pakistan
Updated 10 October 2024
AP

PESHAWAR: Suspected militants riding on a motorcycle opened fire on a vehicle carrying police officers Thursday in a former stronghold of the Pakistani Taliban, killing two of them and wounding two others, police said.
The attack happened in Tank, a city in Khyber Pakhtunkhwa province bordering Afghanistan, local police official Sher Afzal said.
No group has claimed responsibility, but suspicion is likely to fall on the Pakistani Taliban, known as the Tehreek-e-Taliban Pakistan or TTP, who often target security forces.
The TTP are outlawed in Pakistan. They are separate from but a close ally of the Afghan Taliban who control neighboring Afghanistan.
The latest violence came a day after at least three people were killed in clashes in the northwestern town of Jamrud between police and supporters of a banned right group Pashtun Protection Movement or PTM, which authorities say supports TTP.
The government has also barred PTM from holding rallies in the northwest, allegedly because the demonstrations are against the interests of Pakistan. PTM denies backing the Pakistani Taliban, and tension was growing Thursday after the group vowed to resist the ban on their rallies.

Topics: Pakistan Army

Pakistani deputy prime minister orders continued humanitarian assistance for Gaza

Updated 10 October 2024
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Pakistani deputy prime minister orders continued humanitarian assistance for Gaza

  • Pakistan does not recognize nor have diplomatic relations with the state of Israel
  • Islamabad has dispatched several aid consignments for Gaza since last year
Updated 10 October 2024
Arab News Pakistan

ISLAMABAD: Pakistani deputy prime minister Ishaq Dar has ordered continued humanitarian assistance for the people of Gaza as Israeli forces pressed on with a raid in the enclave’s north on Thursday where UN aid officials said hunger is spreading again.
Pakistan does not recognize nor have diplomatic relations with Israel and calls for an independent Palestinian state based on “internationally agreed parameters” and the pre-1967 borders with Al-Quds Al-Sharif as its capital.
Since the beginning of Israel’s war on Gaza, Pakistan has repeatedly raised the issue at the United Nations, the Organization of Islamic Cooperation (OIC) and other multilateral platforms and demanded international powers and bodies stop Israeli military actions in Gaza. The South Asian country has also dispatched several aid consignments for the Palestinians.
“Deputy Prime Minister Ishaq Dar chaired a meeting to discuss humanitarian assistance for people of Gaza,” his office said on X. “He appreciated the efforts of NDMA [National Disaster Management Authority] and directed to continue humanitarian assistance in pursuance of the Declaration adopted by All Parties Conference on 07 October 2024.”


An All Parties Conference (APC) held in Islamabad on Monday called on the OIC to convene an emergency summit to address the situation in Palestine, with Prime Minister Shehbaz Sharif announcing the formation of a special working group to engage other Islamic countries in raising a collective voice against Israel’s ongoing military campaign.
Israel began its offensive against Hamas in Gaza after fighters from the Palestinian group attacked southern Israeli communities on Oct. 7, 2023, killing about 1,200 people and taking about 250 hostage, according to Israeli tallies.
Nearly 42,000 Palestinians have been killed in the Israeli offensive, the Gaza health ministry says. Most of Gaza’s 2.3 million people have been displaced and much of the enclave has been laid to waste.

Topics: War on Gaza

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