Finance Minister Muhammad Aurangzeb confirmed on Wednesday that Saudi Arabia\u2019s $10 billion investment interest remains unchanged. Both countries are shifting from crisis-driven financing toward long-term, trade- and investment-led economic engagement.<\/p>\n\n\n\n
The announcement follows the September Strategic Defense Pact and last month\u2019s Saudi\u2013Pakistan Economic Cooperation Framework. Saudi Arabia, historically a provider of central bank deposits and deferred oil facilities, is now focusing on equity-based, commercially viable investments.<\/p>\n\n\n\n
Aurangzeb cited Pakistan\u2019s improving macroeconomic indicators as a key factor in attracting investment. Inflation, which peaked at nearly 38 percent in May 2023, has eased, the rupee stabilized, and foreign reserves recovered. Fitch and Moody\u2019s have upgraded Pakistan\u2019s outlook, reflecting stronger external liquidity and disciplined policy.<\/p>\n\n\n\n
Pakistan is midway through a $7 billion IMF program. The second review is complete, with a board decision expected in December, signaling receding macroeconomic risks.<\/p>\n\n\n\n
Aurangzeb stressed private-sector leadership: \u201cIt\u2019s not aid; it has to be trade and investment. That is going to bring sustainability at both ends.\u201d Priority sectors for Saudi investment include minerals and mining, IT, agriculture, food, tourism, and manufacturing, linked to Saudi preparations for the 2034 FIFA World Cup. Forward Sports Sialkot\u2019s partnership model for high-precision manufacturing in Pakistan is an example of potential collaboration.<\/p>\n\n\n\n
A major focus remains the Reko Diq copper-and-gold project in Balochistan. Saudi Arabia\u2019s Manara Minerals has offered a 15 percent stake. Aurangzeb said financial close is imminent, with the IFC-led consortium assembling $3.5 billion in project debt, pending final approvals, including from the US Export-Import Bank. Reko Diq\u2019s first-year output could generate $2.8 billion in exports, nearly 10 percent of Pakistan\u2019s total.<\/p>\n\n\n\n
Beyond Reko Diq, Pakistan is pursuing critical minerals deals with the US and other partners, focusing on copper, lithium, cobalt, and rare earths, with investment potential exceeding $1 billion.<\/p>\n\n\n\n
Aurangzeb emphasized that Pakistan aims to convert improving economic fundamentals and favorable geopolitics into long-term, private-sector-led investment flows, with Saudi Arabia as a key partner.<\/p>\n\n\n\n