Muhammad Saleem

The $2.2 billion investment committed by Saudi Arabia in Pakistan will strengthen its fragile economy, benefitting the energy sector the most and ensuring a sustainable energy future for Pakistan.

Talking to WealthPK, Salamat Ali, an industrialist with expertise in Middle Eastern investments, sees billions of dollars’ worth of Saudi investment across various sectors such as industry, agriculture, IT, food, education, mining, health, petroleum, energy, and other areas of mutual cooperation, as a crucial lifeline for Pakistan's struggling economy. Pakistan is grappling with a severe energy crisis, and the Saudi investment in oil refineries and renewable energy projects can significantly alleviate such challenges and ensure a sustainable energy future for the country. A permanent solution to the energy crisis would be a breath of fresh air for Pakistani entrepreneurs, allowing them to focus on their businesses and fetch the much-needed forex. He urged the policymakers to improve governance issues to ensure successful collaboration with foreign investors.

He said governance was indeed a critical factor for attracting the attention of foreign investors, as no one would be ready to invest in a country lacking business-friendly policies. “It's a step in the right direction that the Government of Pakistan has established the Special Investment Facilitation Council (SIFC). The Council needs to streamline processes and provide a ‘one-window’ solution for investors,” Salamat said. Besides, he suggested that the government should ensure transparency and consistency in its policies to win the trust of foreign investors. Talking to WealthPK, Rehan Ahmed, a policy analyst, said the Saudi investment will improve Pakistan's international standing, portraying it as a viable destination for international business. He noted that substantial investment by Saudi Arabia will send a positive signal to other potential foreign investors, ultimately leading to a more stable Pakistani economy.

“Currently, we need to foster stability and growth in our economy to generate funds and create jobs. Successful projects funded by the Saudi investments will open floodgates of foreign direct investment from other countries. Following substantial Saudi investment, I believe we are poised to see a positive change in Pakistan-Saudi relations,” he said. “We need to put out all the stops to manage this investment effectively, as it will serve as a model for similar collaborations with other countries in the region. The promised investments can lead to stronger ties that will encourage other Muslim countries to join hands with Pakistan across multiple sectors,” Rehan opined. He encouraged the Saudi investors to launch ventures in the real estate and construction sectors of Pakistan. Investment in the construction industry will benefit many other businesses, generating countless jobs, he added.

Credit: INP-WealthPk