Ayesha Saba

Saudi Arabia has been undergoing a profound transformation since the launch of Vision 2030, which aims to diversify its economy. Pakistan, with its rich resources and competitive industries, can cater to the evolving needs of the Saudi market. This trade partnership can be mutually beneficial, enhancing economic growth and prosperity in both countries. Pakistan's former ambassador to Saudi Arabia and ex-president of Islamabad Policy Research Institute (IPRI), Khan Hasham Bin Siddiqui, said this while talking to WealthPK. "Pakistan's geoeconomic outreach to Saudi Arabia has been a cornerstone of its foreign policy for decades. The deep-rooted historical, cultural, and religious ties between the two countries have not only fostered a strong political relationship but have also paved the way for significant economic cooperation." "After Vision 2030, the Saudi economy is diversifying and moving towards more sophisticated areas offering numerous opportunities. Pakistan, with its strategic geographic location and strong ties with Saudi Arabia, can benefit from this transformation," the former ambassador stated.

"Given that more than 50 percent of its populace comprises young people, Pakistan's manpower is considered an extremely valuable asset. It has provided Saudi Arabia with a diverse range of labor, from skilled professionals in sectors like healthcare, engineering, and information technology, to unskilled labor in construction and agriculture," he enlightened. "Adaptability, work ethics, and skills of Pakistani workers have made them a valuable asset in Saudi Arabia. The remittances sent by the expatriates in Saudi Arabia have helped stabilize the Pakistani economy, supported families back home, and contributed to foreign exchange reserves. To leverage the potential fully, Pakistan needs to invest in its labor force's skills and education to ensure they meet the evolving demands of the Saudi job market." "Pakistan should aim to expand its export basket by promoting industries with high potential for growth. Sectors such as textiles, garments, processed food, information technology, tourism, and construction offer promising opportunities.

To attract foreign direct investment (FDI), Pakistan can provide competitive incentives, tax breaks, and subsidies due to its investor-friendly policy," he suggested. "Pakistan serves as a bridge between South Asia and Central Asia. The CPEC connects China's western region to the Gwadar Port, providing an economic corridor for trade and development. Saudi Arabia's investments can complement the CPEC by offering a gateway to the Central Asian markets," he added. According to the official data, Pakistan's exports to Saudi Arabia increased by 31 percent to record $563.47 million in the outgoing fiscal year (FY23). The exports to the Kingdom were boosted by the sale of rice, which stood at $106.68 million, followed by meat and edible meat which increased from $46.8 million to $82.73 million. Pakistan's exports to Saudi Arabia were recorded at $429.52 million in the previous year.

Credit: INP-WealthPk