Planning Minister and Saudi Investment Minister discuss bilateral cooperation in trade, agriculture and water

11 Oct 2024

Islamabad: During a meeting with Saudi Investment Minister Khalid Bin Abdulaziz Al Faleh in Serena Hotel Islamabad today, Federal Minister for Planning Ahsan Iqbal said that Pakistan-Saudi Arabia relations are unique and have always withstood the test of time and the challenge is to align them with modern reality by enhancing trade. “Our political relationship will strengthen with strong economic cooperation”, the minister stressed.

Citing the trade figures between both countries, which was 4.6 billion dollars in 2022, he said that Pakistan is committed to increase it by collaborating with current Saudi leadership.

Reflecting on the beginning of Chinese cooperation in the form of CPEC projects, he said that “In 2013, I was given responsibility of starting a game changer project with China. It started with a piece of paper. Within 3-4 years, Pakistan has brought 25 billion dollars of investment under CPEC.”

Quoting the success of CPEC, the minister said that by 2017, Pakistan reached a point where every American and European businessman showed interest in joining CPEC projects.

“Unfortunately due to the bad policies taken up by the new government, our policies got discontinued, which made the economy weak.”

“When we came into power again, our challenge was to stabilize the economy for long term growth. In an effort to revive the economy, we created the 5Es framework. The Minister stated that 5Es framework was made after consulting 1000 opinion leaders and sector experts.

Talking about the future trajectory, minister said that Pakistan’s most important challenge in the next 5-7 years is how to increase exports. “Our weakness is that in tha past 77 years, we did not follow an export led strategy.”

He further said that a big challenge Pakistan is facing is the capacity of low skilled labour working in Saudi Arabia.
“If the labour class returns to Pakistan, it will result in a significant decrease in FDI.”

The minister suggested training the skilled Pakistanis and upgrading their technical capabilities to retain them in the Saudi economy.

Both sides discussed areas in which bilateral trade can be increased. Minister stated that both countries can export meat to 3rd world countries as Pakistan’s agricultural products are at par with any product from developed countries.

Highlighting that Pakistan is the third biggest milk producer in the world, Pakistan’s animals provide an average yield of 1800 litres but the global standard is 6000-8000 litres. The minister said that increasing agricultural productivity is a key focus area for the government. “Our agricultural products can compete with that of New Zealand and Denmark if we boost our standards.”

Talking about Saudi Arabia’s immense natural resources, the Planning minister said that Kingdom of Saudi Arabia, having huge stretches of land, has effectively converted its deserts into water rich resources.

The minister said that a planet with 70% water cannot have lack of water. He hinted towards the desalination of earth through power generated as well as chemical methods. Minister said that in 2013, solar power was 12 cents per unit now it is very cheap.

He suggested the Saudi Minister to lead a project where Pakistan can focus on desalinization technology whose research can be facilitated by China.
Both sides expressed hope in the immense potential promised by Pakistan-Saudi-China partnership.

Saudi Minister said that Saudi Arabia is lowering cost of desalinization as a result of which portable water can be provided to their population. He also positively expressed sharing the Kingdom’s National Transformation Plan for 5 years. Furthermore, he extended his cooperation in making Pakistan a trillion dollar economy.

Highlighting Vision 2025, the Minister said that Vision 2025 had a 3 pronged agenda: including Vision 2035 and Vision 2047. He said that Pakistan is targeting how to be trillion dollar economy by 2035 and 3 trillion dollar economy by 2047. In 2047, Pakistan will have its centennial celebrations of independence. To celebrate that with positive zeal, Pakistan will appreciate the collaboration of its Saudi friend, the Minister stated.