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Pakistani experts stress transforming Pak-Saudi ties into stronger economic partnership

In this handout photograph, released by Pakistan’s Press Information Department on December 3, 2024, Prime Minister Shehbaz Sharif (left) meets Saudi Arabia’s Crown Prince Mohammed bin Salman on the sidelines of the One Water Summit in Riyadh, Saudi Arabia. (PID)
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Updated 05 December 2024
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Pakistani experts stress transforming Pak-Saudi ties into stronger economic partnership

  • Pakistan PM met Saudi crown prince this week in Riyadh for fifth time in six months to discuss bilateral trade, investment
  • Pakistani mission in Riyadh says IT exports to Kingdom increased from $31.67 million in FY23 to $47.09 million in FY 2024
Updated 05 December 2024
SAIMA SHABBIR

ISLAMABAD: Pakistani business leaders, experts and officials this week hailed Islamabad’s growing economic partnership with Saudi Arabia, saying it was high time the two countries transformed their close ties into a robust and mutually rewarding economic partnership. 

Prime Minister Shehbaz Sharif on Wednesday concluded a two-day visit to Saudi Arabia where he met Saudi Crown Prince Mohammed bin Salman on the sidelines of the One Water Summit in Riyadh. During the visit, Sharif met the crown prince for the fifth time in six months, during which both sides agreed to bring about a qualitative change in bilateral ties and expressed satisfaction over the pace of implementation of $2.8 billion agreements signed between the two countries. 

Pakistan has pushed in recent months to strengthen trade and investment ties with friendly nations, particularly the Kingdom, which has promised a $5 billion investment package that cash-strapped Islamabad desperately needs to shore up foreign reserves and fight a chronic balance of payment crisis.

The Prime Minister’s Office (PMO) said in a statement this week that seven out of 34 MoUs valued at $2.8 billion and signed earlier this year with Saudi Arabia have been converted into agreements worth $560 million.

“This is high time to transform the Pakistan-Saudi relationship into a stronger economic partnership, especially following the recent increase in high-level leadership contacts and exchanges of business delegations,” Fahad Barlas, chairman of the Pakistan Association of Exhibition Industry, told Arab News on Wednesday. 

Barlas organized the second Pakistan Investment Summit in Jeddah on Nov. 30 under the Pakistan Association of Exhibition Industry. The event featured 31 Pakistani companies from various sectors and was attended by prominent traders, investors, and community figures.

“We brought together 31 Pakistani companies, all of which received promising leads, with around 20 of them expected to convert into tangible collaborations and deals worth over $25 million,” he disclosed.

He said five MoUs were signed at the event, adding that the major companies that signed deals included real estate developers such as Exotica, ParkView City, and the Defense Housing Authority. 

Pakistan and Saudi Arabia’s growing closeness and business ties have translated into higher trade between the two countries. 
“In FY 2024, Pakistan’s trade volume with Saudi Arabia reached $5203.19 million marking an increase from $5010.47 million in FY 2023,” the Pakistani mission in Riyadh told Arab News.

It said that from July to October during the current financial year, Pakistan’s trade volume with Saudi Arabia has already reached $1,577.85 million. Meanwhile, Pakistan’s total exports to Saudi Arabia were recorded at $710.29 million for FY 2024, up from $503.85 million in FY 2023.

“Pakistan’s exports to Saudi Arabia for the period from July to October current FY 2025 amounted to $245.56 million, compared to $214.98 million during the same period in FY 2024, reflecting a notable increase,” the embassy added.

The mission said Pakistan’s IT exports registered a “significant growth” of over 48 percent in FY24, increasing from $31.67 million in FY 2023 to $47.09 million. Pakistan’s services exports to the Kingdom increased by 20 percent, rising from $346.88 million in FY 2023 to $417.94 million in FY 2024. 

“Pakistan’s services exports to Saudi Arabia for the period from July to October FY 2025 reached $151.21 million, compared to $132.54 million during the same period in FY 2024, reflecting a growth in exports,” it added. 

The mission said Pakistan’s main exports to Saudi Arabia included cereals, meat and beef, textiles, knitted garments, cotton fabrics, beverages, spices, fruits and vegetables, fish and fish products, light engineering goods, leather products, towels and organic chemicals.

KINGDOM ‘MAJOR INVESTOR’ IN PAKISTAN

Khaqan Najeeb, former adviser to the finance ministry, said Pakistan’s relationship with Saudi Arabia was now emerging in investment and trade, particularly focused on science, technology, IT, mining sector and agriculture areas. 

“It would be important to say that at the time when Pakistan needed the required gross external financing needs to be fulfilled, Saudi Arabia was a key player to ensure its deposits in Pakistan,” he told Arab News.

Najeeb said it was good to see agreements worth $560 million signed with Saudi Arabia were now being implemented, signaling a positive progress in bilateral business relations.

“The recent interaction will boost the confidence of the Saudi government and hope to see the crown prince visiting Pakistan to conclude some of the ongoing talks around the mines and mineral sector in Pakistan,” he said. 

Javed Hafeez, a former Pakistani diplomat, said the impact of the increased Pakistan-Saudi Arabia leadership-level contacts on investment and trade would be “positive.”

“The Kingdom of Saudi Arabia is a major investor in Special Investment Facilitation Center (SIFC) and its related projects, especially in agriculture and in mining,” he told Arab News.

Pakistan formed the Special Investment Facilitation Council (SIFC), a hybrid civil and military body, in 2023 to fast-track decisions related to foreign investment in its key economic sectors such as agriculture, mining, minerals, tourism and others.

He said that the five meetings between Sharif and the Saudi crown prince in six months highlighted both sides’ mutual desire for frequent consultations, especially as the region undergoes turbulence.

“In terms of peace and security, Saudi Arabia and Pakistan, as close allies, regularly consult each other at key junctures, given their shared responsibility for peace in the Middle East,” Hafeez said.

Topics: Pakistan Saudi Arabia ties

Government arrests two human smugglers linked to Greek boat tragedy that killed five Pakistanis

Updated 13 sec ago
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Government arrests two human smugglers linked to Greek boat tragedy that killed five Pakistanis

  • FIA says Muhammad Aslam and Saeed Ahmed were arrested in separate operations from Gujranwala and Gurjat
  • Investigations reveal victims of the boat tragedy paid over $30,000 after being promised safe passage to Europe
Updated 13 sec ago
NAIMAT KHAN

KARACHI: Pakistani authorities on Sunday arrested two men involved in a recent boat tragedy off the coast of Greece that killed at least five nationals, as part of an intensified crackdown on human smuggling networks, the Federal Investigation Agency (FIA) said.

The arrests come in the wake of a boat disaster last week near the Greek island of Gavdos, which highlighted the perilous journeys many migrants undertake, often driven by conflicts in the Middle East. In the case of Pakistani nationals, economic challenges push many young individuals to attempt dangerous crossings to Europe in search of better financial prospects.

The issue illegal immigrations to Europe came under greater scrutiny in the country last year when hundreds of migrants, including 262 Pakistanis, drowned after an overcrowded vessel capsized off the southwestern Greek coastal town of Pylos.

The FIA said it apprehended Muhammad Aslam and Saeed Ahmed in separate operations following directives from Prime Minister Shehbaz Sharif to target those facilitating illegal migration.

The Pakistani agency informed Aslam was part of an international human smuggling ring and was accused of orchestrating the ill-fated journey that saw Pakistani migrants taken to Libya before being put on a boat bound for Greece.

“Using advanced technology, Aslam was tracked and arrested in Gujranwala,” the FIA statement said, adding the second suspect was arrested in Gujrat district located in the eastern Punjab province and was accused of creating fake travel documents and charging large sums for his services.

The statement informed Aslam extorted Rs8.5 million ($30,660) from victims by promising safe passage to Europe.

The Pakistani premier called for enhanced cooperation with international agencies earlier this month, seeking swift action against human trafficking networks. He also instructed the FIA to compile a detailed report on migration-related incidents over the past year and implement an Integrated Border Management System (IBMS) to monitor and prevent illegal movement.

The FIA said in its statement it had formed special teams to track other suspects linked to human smuggling rings.

“We will use all available resources to arrest those playing with innocent lives,” Abdul Qadir Qamar, the director of the FIA’s Gujranwala zone, was quoted as saying in the statement.

Authorities have presented 174 human smuggling cases in court this year, with four convictions reported so far. The government has also decided to launch a public awareness campaign to discourage dangerous migration attempts.

“Concrete evidence will ensure the culprits face severe punishment,” Qamar added, emphasizing the government’s commitment to preventing such tragedies.

Topics: Greece migrant boat

Pakistan government forms committee to negotiate with Imran Khan’s party amid growing polarization

Updated 32 min 18 sec ago
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Pakistan government forms committee to negotiate with Imran Khan’s party amid growing polarization

  • Development comes after Khan threatened civil disobedience in the country, seeking release of political prisoners
  • Government acknowledges talks can help break the current impasse which has also impacted national economy
Updated 32 min 18 sec ago
Arab News Pakistan

ISLAMABAD: The government on Sunday formed a committee to hold talks with the opposition Pakistan Tehreek-e-Insaf (PTI) party, state media reported, to discuss a range of issues causing political polarization that has also impacted the country’s fragile economy.

The move comes after PTI founder and former Prime Minister Imran Khan threatened to launch civil disobedience by urging overseas Pakistanis, a key support base for his party, to halt remittances if the government does not meet his demands, including the release of political prisoners, by Dec. 22.

Khan, who has been imprisoned for over a year on charges he claims are politically motivated, has also called for judicial commissions to investigate violent protests on May 9 last year and Nov. 26 this year, which the government says involved his party supporters.

“Prime Minister Shehbaz Sharif has formed a committee comprising government members,” state-owned Pakistan Television News reported. “This committee will hold negotiations with Pakistan Tehreek-e-Insaf.”

The formation of the government’s negotiating team followed a meeting between PTI Chairman Barrister Gohar Khan and National Assembly Speaker Sardar Ayaz Sadiq on Saturday evening in which Gohar requested the creation of a parliamentary committee to facilitate dialogue. Sadiq subsequently approached the Prime Minister, urging him to nominate representatives for the talks.

The government’s committee includes key figures from the ruling Pakistan Muslim League-Nawaz (PML-N), such as Deputy Prime Minister Ishaq Dar, Political Adviser Rana Sanaullah and Senator Irfan Siddiqui, alongside representatives from allied parties. PTI has already established its own negotiating team.

The development comes a day after Pakistan’s military announced prison sentences for 25 people involved in the May 9, 2023, protests, which PTI has demanded be investigated. The military said it had gathered “irrefutable evidence” against those prosecuted and reiterated its commitment to bringing the planners of the violence to justice.

The announcement has raised concerns among supporters of former Prime Minister Imran Khan, who faces charges of inciting attacks against the armed forces and may potentially be tried in a military court.

The country has remained gripped by political unrest and uncertainty since Khan’s ouster from power through a parliamentary no-confidence vote, which has also exacerbated Pakistan’s economic hardships.

Senior government representatives have recently acknowledged that negotiations could offer a pathway out of the current political impasse. However, they have cautioned that it is too early to determine which of PTI’s demands might be addressed.

Topics: Pakistan Imran Khan PTI Arab News Pakistan

Pakistan PM orders crackdown on tax evasion, calls for modernization of revenue collection system

Updated 22 December 2024
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Pakistan PM orders crackdown on tax evasion, calls for modernization of revenue collection system

  • Pakistan’s tax-to-GDP ratio is among the lowest in the region, with government aiming to increase it to 13.5%
  • Tax reforms are also part of the IMF recommendations, which led to approval of a $7 billion loan package this year
Updated 22 December 2024
Arab News Pakistan

ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday directed authorities to take strict action against tax evasion and ensure non-compliance is addressed as part of his administration’s efforts to enhance revenue collection and modernize the tax system, according to the state media.

Chairing a meeting in Lahore, Sharif emphasized the need for incorporating advanced technology to improve the Federal Board of Revenue’s (FBR) performance.

“Improving the FBR’s performance through technology is the government’s top priority,” the Associated Press of Pakistan (APP) news agency quoted him as saying.

The prime minister called for the swift completion of the FBR’s value chain digitization and instructed the rapid implementation of video analytics in the cement and tobacco industries, sectors prone to tax underreporting.

He expressed optimism that digitization efforts would help recover billions of rupees for the national treasury.

The government has recently undertaken a series of tax measures, including expanding the tax base and targeting untaxed sectors.

Earlier this year, Finance Minister Muhammad Aurangzeb emphasized the need for everyone to pay their fair share, describing tax reforms as critical to breaking the cycle of external financial reliance.

Pakistan’s tax-to-GDP ratio remains among the lowest in the region, at just over nine percent, though the government aims to increase it to 13.5% in the coming years.

The Pakistani administration has also announced to launch a crackdown on affluent individuals not yet in the tax net, with the FBR tasked to identify and penalize evaders.

The tax reforms are also part of the International Monetary Fund’s recommendations, which led to the approval of a fresh $7 billion loan package for the country this year.

Topics: Pakistan tax-to-GDP ratio

Pakistan vows zero tolerance for mistreatment of polio workers as year’s last vaccination drive ends

Updated 22 December 2024
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Pakistan vows zero tolerance for mistreatment of polio workers as year’s last vaccination drive ends

  • Polio teams often face hostility in Pakistan, with militant groups targeting them and locals resisting their efforts
  • Government promises to take strong action against cases of harassment or abuse directed at frontline workers
Updated 22 December 2024
NAIMAT KHAN

KARACHI: Pakistan’s government on Saturday said it would not tolerate the mistreatment of polio workers as the final vaccination campaign of the year to eradicate the disease concluded across much of the country amid a sharp increase in number of cases in 2024.

The weeklong nationwide vaccination drive, held Dec. 16-22, aimed to immunize 44 million children in 143 districts. Despite extensive efforts, the 2024 tally reached 64 cases this month.

Pakistan and Afghanistan remain the only two countries in the world where polio remains endemic. Regular door-to-door campaigns have been a cornerstone of Pakistan’s eradication strategy, but vaccination teams often face hostility, with militant groups targeting workers and local communities resisting efforts.

Earlier this week, authorities in Sindh arrested six people after a polio team was reportedly attacked by a tribal family in Karachi’s Qur’angi neighborhood.

“The government has adopted a zero-tolerance policy against actions targeting polio workers,” said Ayesha Raza Farooq, the prime minister’s focal person for polio eradication.

“Mistreatment of polio workers will not be tolerated,” she continued. “We are in contact with provincial authorities regarding incidents involving workers, and strict action will be taken against perpetrators.”

Farooq urged all provincial and district officials to take strong action against cases of harassment or abuse directed at frontline workers. She emphasized that protecting polio teams was critical to safeguarding children from the devastating effects of the disease.

The anti-polio campaign is yet to be carried out in Pakistan’s Balochistan province where officials announced a postponement of the vaccination drive until Dec. 30 due to a lack of preparedness.

The province has reported 26 cases this year, the highest in Pakistan, highlighting its vulnerability to the virus.

Farooq also appealed to communities to support and protect polio workers, calling them the backbone of the nation’s fight against polio.

“Ending polio is a national priority, and frontline workers are like our backbone [in this struggle],” she added.

Topics: Polio

China’s ADM Group to invest $350 million in Pakistan’s EV sector

Updated 22 December 2024
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China’s ADM Group to invest $350 million in Pakistan’s EV sector

  • The South Asian country plans to convert 30 percent of all vehicles to electric power by 2030
  • The Chinese firm will set up electric vehicle manufacturing plant, over 3,000 charging stations
Updated 22 December 2024
Arab News Pakistan

ISLAMABAD: Chinese enterprise ADM Group has announced an investment of $350 million in Pakistan’s electric vehicle (EV) sector, Pakistani state media reported on Saturday.

As part of the initiative, the Chinese firm will establish more than 3,000 electric vehicle charging stations across the South Asian country, the Radio Pakistan broadcaster reported.

Of these 3,000 charging stations, 1,000 will be set up in Sindh, 1,500 in Punjab, and 750 in Khyber Pakhtunkhwa and Balochistan provinces.

“The ADM Group will allocate $250 million for the establishment of an electric vehicle manufacturing plant in Pakistan,” the report read.

The Chinese enterprise will provide $90 million for developing the necessary charging infrastructure, according to Pakistani state media.

The electric vehicles, which will be capable of traveling up to 300 kilometers on a single charge, are expected to help reduce carbon emissions and lessen the country’s dependence on conventional fuel sources.

Pakistan’s Privatization Minister Abdul Aleem Khan said in November that 30 percent of all vehicles in Pakistan would be converted to electric power by 2030 as the South Asian country takes step to combat air pollution and other climate change effects.

“Pakistan aims to convert 30 percent of its vehicles to electric by 2030,” Khan said as he addressed the “Transport and Digital Middle Corridor and Beyond” session at the UN COP29 summit in Baku.

“Significant steps are underway to support the widespread adoption of electric vehicles in Pakistan … the government is actively working on infrastructure development for EVs, including the installation of charging stations.”

Hybrid electric vehicle sales have more than doubled in Pakistan in the past year. BYD Pakistan, a partnership between China’s BYD and Pakistani car group Mega Motors, said in September up to 50 percent of all vehicles bought in Pakistan by 2030 will be electrified in some form in line with global targets.

Warren Buffett-backed Chinese electric vehicle giant BYD announced its entry into Pakistan in August, making the nation of 250 million people one of its newest markets.

Pakistani media reported in August that standards for EV charging stations had been drafted by the power ministry, with the government considering offering them affordable electricity.

Under the government’s New Energy Vehicle (NEV) policy announced last month, the government has introduced subsidies of Rs50,000 for electric motorcycles and Rs200,000 for three-wheelers like rickshaws, with a total allocation of Rs4 billion. These subsidies will be distributed through auctions. So far, two companies have been granted licenses, and 31 more applications are under review.

Additional initiatives include offering free electric bikes or scooters to high-achieving students and reducing duties on EV components to encourage local manufacturing. The government is also set to establish a New Energy Fund and a New Energy Vehicle Center to support these measures.

Topics: Pakistan China Ties ADM Group New Energy Vehicle policy

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