- Pakistani head of joint chamber of commerce says 30 Saudi companies expected to invest
- Agreements worth $10 billion to be signed in non-oil and gas sectors
KARACHI: Saudi Arabia is likely to invest $15-20 billion in Pakistan during the upcoming visit of crown prince Muhammad Bin Salman next month, the head of Pakistan's board of investment said on Thursday.
Saudi Arabia and the United Arab Emirates have offered Pakistan over $30 billion in loans and investments in recent months to tackle a soaring current account deficit. Crown Prince Mohammed bin Salman is expected to sign off on the kingdom’s deals during his visit, including a $10 billion oil refinery to be set up in Pakistan’s deepwater port of Gwadar.
“We are expecting Saudi investment in the range of $15 billion to $20 billion based on the interest investors have expressed so far," Haroon Sharif, Minister of State and Chairman of the Board of Investment told Arab News. “However, you must qualify that these investments are subject to business planning and feasibility studies."
Sharif said Pakistan has also proposed that Saudi authorities hold a conference during the upcoming visit of the crown prince.
“We have sent a proposal to hold an investors’ conference during the visit of crown prince. Details will be shared after the response from the Kingdom," Sharif said.
He had also said earlier that Pakistan expected around $15 billion investment from Saudi Arabia in the next three years and roughly around $40 billion from Saudi Arabia, the UAE and China combined, in the next three to five years.
Mian Mehmood, the Pakistani head of the Pakistan Saudi Arabia Joint Chamber of Commerce and Industry, said besides the $10 billion investment in the oil refinery, another $10 billion was expected in non-oil and gas sectors, bringing total investment to $20 billion.
“Around 25 to 30 agreements are expected to be finalized during the upcoming visit of the crown prince," Mehmood, who recently led a business delegation to the Kingdom to explore bilateral investment and cooperation opportunities, told Arab News.
More than thirty public and private companies are poised to invest in Pakistan, including Saudi Aramco, Sabic and Acwa Power, Mehmood added.
“We roughly estimated that a similar amount [$10 billion] worth of agreements will be signed in non-oil and gas sectors," he said.
The targeted sectors for Saudi foreign direct investment are oil refining, petrochemical, mining, construction, power generation, agriculture and glass. “Ten Saudi manufacturing companies working in construction and allied materials, and ten companies interested in food processing sector will come to sign agreements," Mehmood said.
Speaking to reporters in Gwadar on a visit to inspect the site of a $10 billion refinery, Saudi Energy Minister Khalid al-Falih said in the beginning of this year: “Saudi Arabia wants to make Pakistan’s economic development stable through establishing an oil refinery and partnership with Pakistan in the China Pakistan Economic Corridor."
Work on the oil refinery is expected to start within 18 months.
"Once the project starts production, the country would be able to save around $3 billion foreign exchange on costly imports," Samiullah Tariq, head of research at Arif Habib Limited, said.