In his address at the eighth edition of the two-day Future Investment Initiative (FII) in Riyadh, Saudi Arabia, Prime Minister Shehbaz Sharif stated, “Pakistan is prepared to join the countries that dare to dream big. We invite you to invest in Pakistan, bringing your expertise and creativity, as we build a future rooted in resilience and shared prosperity.”
Held in Riyadh, this year’s FII, themed “New Horizons: Investing Today to Build Tomorrow,” is expected to see over $28 billion in agreements announced by global executive leaders. Prime Minister Sharif’s visit to Saudi Arabia and participation in the FII conference has brought a renewed hope for Pakistan’s economy.
In a bilateral meeting between Prime Minister Sharif and Saudi Crown Prince Mohammed bin Salman, both leaders reaffirmed their commitment to enhancing trade and investment. Potential financial aid and agreements from Saudi Arabia could help Pakistan tackle its economic challenges, paving the way for further economic cooperation between the two countries. This collaboration could open up opportunities for long-term investments in Pakistan’s Special Economic Zones and oil and gas sectors. By focusing on institutional and legal reforms, these relations could greatly contribute to long-term economic development and the welfare of the people.
The FII, also known as “Davos in the Desert,” serves as a platform where global leaders, corporate heads, entrepreneurs, and policymakers converge to discuss the future of industries, governance, and humanity. The conference covers topics such as artificial intelligence, robotics, education, energy, space, public health, and sustainable development, addressing critical global issues. Established in 2017 as an annual gathering, the FII unites business leaders and investors worldwide.
The FII provides a platform for participating nations to showcase economic and financial potential, attract foreign investment, and engage in dialogue to create a sustainable future. It prioritizes sustainable economic and social development while investing in cutting-edge technology.
Saudi Arabia’s interest in investing in Pakistan could notably transform Pakistan’s mineral landscape. Saudi Arabia, with its Public Investment Fund valued at over $1 trillion, is now prepared to support Pakistan’s mining industry. Minerals like copper, essential for lithium batteries, play a crucial role in energy transition and renewable economic development. There is a global race to secure minerals such as copper, which are deemed vital for renewable energy.
However, many of these minerals are located in geopolitically unstable regions, making mining challenging. Pakistan also has copper and gold reserves, which have drawn Saudi Arabia’s attention. Saudi Arabia views Pakistan’s resources as a sound investment for global renewable energy needs. The Saudi Public Investment Fund prioritizes mining, identifying it as one of the 13 key sectors for investment. Collaborative efforts between Saudi Arabia and Pakistan could yield mutual benefits, enhancing Pakistan’s mining expertise and capabilities.
The Reko Diq project, located in a mineral-rich area of Balochistan that is part of the Tethyan Magmatic Arc, stands to benefit significantly from the involvement of a major investor like Saudi Arabia. Introducing Saudi capital to Pakistan’s mining sector is anticipated to underscore the importance of a mineral-based economy. Long-term benefits and cautious consideration of geopolitical and economic factors will be crucial, as this collaboration is not merely about investment and equity sharing.
For the first time in recent history, both nations are attempting to strengthen relations based solely on economic commitments, without financial aid or commercial partnerships. This represents a significant achievement for Pakistan.
Looking forward, interest from Gulf countries in Pakistan’s economic sectors, including areas beyond mining, could increase. Prospects are also promising for investments in sectors such as agriculture, IT, and the privatization of the national airline, which could transform Pakistan’s economy, with mining potentially leading this shift.
Saudi Arabia is currently implementing policies to reduce its reliance on oil and promote renewable energy. With a fund of over $700 billion, the Saudi Public Investment Fund ranks among the largest global investment funds and seeks opportunities under Vision 2030. Pakistan has the capacity to meet these demands fully.
Increased engagement between officials from both countries is evident, driven by mutual economic interests. The Saudi delegation to Pakistan includes over 30 heads of prominent Saudi companies in sectors such as IT, marine, mining, oil and gas, pharmaceuticals, and aviation. This clearly indicates the sectors Saudi investors are targeting in Pakistan.
New Saudi investments in these sectors would not only introduce modern trends but also raise interest from Gulf countries in Pakistan’s economic sectors, increasing awareness about Pakistan’s investment potential. However, challenges remain, including the need for exemplary law and order and political harmony at the national level, as political instability can hinder economic growth.
Pakistan is currently in an economic recession that requires taking on additional loans to repay existing foreign debts, creating a cycle that seems unending. According to the Federal Minister for Economic Planning, the government’s income is Rs 7,000 billion, while loan repayments total Rs 8,000 billion. Compounding the problem, a large portion of resources is lost to corruption and smuggling, with petrol smuggling alone costing the national treasury $2 billion annually.
If Pakistan succeeds in attracting investment from Saudi Arabia and other friendly nations, it could pave the way for economic growth, increased employment, reduced inflation, and poverty alleviation. The government must remain fully focused on fulfilling its role in this endeavor. The Pakistani government is also working on economic reforms aimed at increasing the tax-to-GDP ratio, reducing energy costs, privatizing state-owned enterprises, and enhancing human resource utilization. However, these efforts will only be effective if a favorable investment environment is established.
As national debt exceeds 80% of GDP, the government’s priority should shift from arranging new loans to providing a conducive environment for investment, enabling the country to address economic challenges with available resources. Political leadership should also recognize its responsibilities by promoting national unity and harmony, paving the way for both domestic and foreign investment, and accelerating economic growth.