Pakistan envoy identifies textiles, agriculture as key sectors to focus in exports to Saudi Arabia

Pakistan envoy identifies textiles, agriculture as key sectors to focus in exports to Saudi Arabia
Pakistan Ambassador to Saudi Arabia Ahmad Farooq holds a meeting with IT companies in Islamabad, Pakistan, on January 29, 2025. (Pakistan Embassy in Saudi Arabia)
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Updated 31 January 2025
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Pakistan envoy identifies textiles, agriculture as key sectors to focus in exports to Saudi Arabia

Pakistan envoy identifies textiles, agriculture as key sectors to focus in exports to Saudi Arabia
  • Pakistan and Saudi Arabia are close regional partners, and the Kingdom remains the largest source of remittances to the South Asian country
  • Ambassador Ahmad Farooq stresses need to improve vocational training of Pakistani workers to meet standards required for mega Saudi projects

KARACHI: Pakistan Ambassador to Saudi Arabia Ahmad Farooq on Wednesday identified textiles, agriculture and red meat as key sectors for Pakistani businesses to focus on in order to increase the country’s exports to the Kingdom.

Farooq identified the key sectors during his visit to the Karachi Chambers of Commerce and Industry (KCCI) on Wednesday, where he met with leading Pakistani businesspersons and industrialists, according to the KCCI.

The ambassador highlighted that Pakistan’s exports to the Kingdom had registered a 40 percent increase during 2023-24, with the information technology (IT) sector witnessing an impressive 50 percent growth.

Pakistan and Saudi Arabia last year signed 34 agreements worth nearly $3 billion, of which, memorandums of understanding (MoUs) worth $700 million have already entered the implementation stage, according to Farooq.

“We want large businesses to connect with local distributors in Saudi Arabia to facilitate exports,” he was quoted as saying by the KCCI. “A list of key exporters in these sectors should be shared with the [Pakistani] embassy so we can work together to strengthen trade relations.”

Farooq said Pakistani textile, agriculture and meat (beef and mutton) products had already seen a “remarkable growth” in the Saudi market, adding that the Kingdom offers vast opportunities for Pakistani businesses.

“The purpose of my visit is to discuss business opportunities with the Karachi business community and update them on how Pakistan’s embassy can support them in accessing the Saudi market,” he added.

Speaking about the rising demand for skilled manpower, the Pakistani envoy said more than 3 million Pakistanis were currently living in the Kingdom, however, 97 percent of them were “blue-collar workers.”

Saudi Arabia is currently developing its public service sectors such as health, education, infrastructure, recreation and tourism as part of a strategic framework, Vision 2030, which aims to diversify the Kingdom’s economy beyond oil. The

Kingdom’s ambitious plan coincides with Pakistan’s efforts to boost trade and foreign investment to revive its fragile economy.

“Saudi authorities have advised us to improve vocational training for Pakistani workers to meet the standards required for upcoming projects,” Ambassador Farooq said, stressing the need to enhance training programs to equip these workers with modern technical skills.

Pakistan and Saudi Arabia are close regional partners, and the Kingdom remains the largest source of remittances to the South Asian country, contributing $7.5 billion in the last fiscal year (July 2023-June 2024), according to KCCI President Jawed Bilwani.

Saudi Arabia has also regularly provided Pakistan oil on deferred payments and offered direct financial support to help shore up Pakistan’s forex reserves.

KCCI Senior Vice President Zia-ul-Arfeen stressed the need to enhance joint ventures between the two countries, urging Islamabad to further improve the ease of doing business for foreign investors.

“Saudi investors should consider Pakistan for investments, particularly in the food sector,” he added.


Pakistan’s finance chief admits privatization setbacks, vows to carry it out

Pakistan’s finance chief admits privatization setbacks, vows to carry it out
Updated 10 sec ago
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Pakistan’s finance chief admits privatization setbacks, vows to carry it out

Pakistan’s finance chief admits privatization setbacks, vows to carry it out
  • Muhammad Aurangzeb says the government wants to reestablish Pakistan as a ‘bankable brand’
  • He says it is important for the country to restore people’s trust in the Pakistani tax authorities

KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb acknowledged on Thursday Pakistan’s privatization efforts have encountered setbacks, notably a failed attempt to sell the national airline last year, though he affirmed the government’s commitment to advancing the privatization agenda.
Speaking at an economic conference in Islamabad, Aurangzeb addressed the difficulties faced in divesting state-owned enterprises (SOEs), a key component of the International Monetary Fund’s (IMF) structural reform requirements.
The privatization initiative aims to alleviate the financial burden of loss-making SOEs on the national economy. Last October, the sought to sell Pakistan International Airlines (PIA) after multiple delays in the bidding process.
The final round attracted only one bid from real estate developer Blue World City, offering Rs10 billion ($36 million) for a 60 percent stake — substantially below the government’s minimum price of Rs85 billion. Consequently, the privatization ministry rejected the offer, citing non-compliance with financial expectations.
“We have faced hiccups while doing privatization,” Aurangzeb said. “PIA is getting to be relaunched. But we are very determined to take this forward.”
The government anticipates that PIA privatization prospects will improve following the resumption of flights to Europe in January 2025. PIA’s operations to the European Union were suspended in June 2020 due to safety concerns after a crash in Karachi, resulting in a four-and-a-half-year ban.
The minister emphasized the government’s stance on limiting its role in commercial enterprises, advocating for private sector leadership in economic activities.
“The private sector has to lead the country,” he asserted. “The government must be there to provide policy framework and policy continuity.”
Aurangzeb outlined the administration’s vision to reestablish Pakistan as a “bankable brand,” necessitating comprehensive structural reforms currently underway. These reforms include measures to control public expenditure and expedite the rightsizing of government operations.
He highlighted significant transformations in the taxation system, focusing on digitization to incorporate all businesses into an equitable tax framework.
“It is very important that we restore the trust in the tax authorities,” he noted.
 


China’s sprawling rail projects, from Pakistan to Indonesia

China’s sprawling rail projects, from Pakistan to Indonesia
Updated 25 min 59 sec ago
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China’s sprawling rail projects, from Pakistan to Indonesia

China’s sprawling rail projects, from Pakistan to Indonesia
  • In Pakistan, railway linking Gwadar Port with China’s Xinjiang province has long been on the cards
  • If the project moves ahead, a 2023 Chinese study estimated an eyewatering price tag of $58 billion

TOKYO: Vietnam approved plans on Wednesday for a multi-billion-dollar railway with China, boosting links between the two communist countries.
Around the region, China has been financing railways under its Belt and Road Initiative, which funds infrastructure projects globally, but has come under fire with a number of plans stalled or mired in controversy.
Here are some of the key instalments in Asia’s China-backed railway network:
PAKISTAN
In Pakistan, a railway linking southwestern Gwadar Port with China’s northwestern Xinjiang province has long been on the cards but has yet to materialize.
If the project moves ahead, a 2023 Chinese study estimated an eyewatering price tag of $58 billion.
INDONESIA
Indonesia launched Southeast Asia’s first high-speed railway in October 2023, after years of delays. The $7 billion China-backed project links the capital Jakarta to the city of Bandung in 45 minutes — slashing the journey by about two hours.
Built by a joint venture of four Indonesian state companies and Beijing’s China Railway International Co, it was initially set to cost less than $5 billion and be completed by 2019. But construction challenges and the pandemic led to delays and surging expenses.
Indonesia’s then-president Joko Widodo nevertheless hailed its opening as a symbol of modernization.
LAOS
Laos unveiled its $6 billion Chinese-built railroad in 2021, bringing hopes of an economic boost despite backlash after thousands of farmers had to be evicted to make way for construction.
The 414-kilometer (260-mile) route connects the Chinese city of Kunming to Laotian capital Vientiane, with plans for the high-speed line to ultimately reach Singapore.
Infrastructure-poor Laos, a reclusive communist country of about 7.4 million people, previously had only four kilometers of railway tracks.
It was hoped that the railway would boost the Southeast Asian country’s ailing tourism industry, which struggled to rebound from the pandemic.
But experts also raised concerns over whether cash-strapped Laos — where public debt made up 116 percent of GDP in 2023 — would ever be able to pay back Beijing.
THAILAND
After long delays, Thailand is pressing ahead with a Chinese-backed high-speed line set to partially open in 2028. The $5.4 billion project aims to expand the connection to Kunming, running to Bangkok via Laos by 2032.
Thailand already has nearly 5,000 kilometers (3,000 miles) of railway but the sluggish, run-down network has long driven people to favor road travel — despite extremely high accident rates.
When the new railroad is fully complete, Chinese-made trains will run from Bangkok to Nong Khai, on the border with Laos, at up to 250 km/h.
Unlike Laos, Thailand signed a deal to cover project expenditures itself and has pitched it as a way to boost the economy through trade with China.
KYRGYZSTAN
Kyrgyz President Sadyr Japarov inaugurated construction in December of a railway linking China, Kyrgyzstan and Uzbekistan, with hopes it will serve as a supply route to Europe.
“This route will ensure supply of goods from China to Kyrgyzstan and then onto Central Asia” and nearby countries “including Turkiye” and “even to the European Union,” he said.
The project, which Kyrgyz authorities estimate could cost up to $8 billion, includes construction through mountains and in areas of permafrost, where the ground never fully thaws.
VIETNAM
Vietnam this week approved an $8-billion railroad running from its largest northern port city to China. The line will operate through some of Vietnam’s key manufacturing hubs, home to Samsung, Foxconn and Pegatron factories, many of which rely on components from China.
Another yet-to-be-approved line to China would connect Hanoi to Lang Son province, traveling through more areas packed with manufacturing facilities.
MALAYSIA
Malaysia has revived construction of a nearly $17 billion railroad to carry passengers and freight between shipping ports on its east and west coasts. The China-backed, 665-kilometer project was originally launched in 2011 under ex-leader Najib Razak, but shelved due to a dispute about payments.
After blowing past several deadlines and budgets, it now looks set to be operational by 2027.
MYANMAR
In coup-hit Myanmar, talks on building a railway from Mandalay to China’s Yunnan province appear to have stalled.
And in the Philippines, plans for China to fund three railways flopped after Manila backed out of talks in 2023 as the South China Sea dispute heated up.


Pakistan’s information minister seeks strengthened media collaboration at Saudi forum

Pakistan’s information minister seeks strengthened media collaboration at Saudi forum
Updated 3 min 3 sec ago
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Pakistan’s information minister seeks strengthened media collaboration at Saudi forum

Pakistan’s information minister seeks strengthened media collaboration at Saudi forum
  • Ata Tarar says local media organizations need skill enhancement through international partnerships
  • He praises Saudi Research and Media Group, Arab News’ parent company, for positive social impact

ISLAMABAD: Pakistan’s Information Minister Ataullah Tarar on Thursday emphasized the need for increased collaboration between local and international media organizations while addressing the Saudi Media Forum in Riyadh.
The minister arrived in the Kingdom a day earlier to attend the gathering, which brings together over 200 leading media professionals, innovators and thought leaders from around the world. During his visit, he met with his Saudi counterpart, Salman Al-Dossary, and both agreed to form a joint committee to produce songs, films and documentaries.
In his remarks at the forum, Tarar highlighted his government’s focus on developing a “vibrant media which has all aspects covered as far as the digital domain is concerned,” adding that the goal would only be achievable through enhanced collaboration between foreign and local outlets.
“I think it’s collaborations and cooperation which make the world go round,” he said. “Living in one country and not being able to communicate or collaborate would just bring things to a grinding halt because eventually your market begins to saturate.”

In this handout photo, taken and released by the Saudi Media Forum, Pakistan Information Minister Ataullah Tarar (right) gestures during a panel discussion on the first day of the Saudi Media Forum in Riyadh on February 19, 2025. (Photo courtesy: Facebook/SMF)

“So there’s always room for growth,” he continued. “There’s always room for development. And there’s always room for improvement.”
When the moderator mentioned the Saudi Research and Media Group (SRMG), the parent company of Arab News, Tarar acknowledged its “positive impact” on Pakistani society.
“With regard to SRMG, we have Urdu News, we have Arab News [and] we have Independent Urdu, which are doing a great job,” he said. “And [this is] not only [as] digital platforms, but overall, they have a very positive impact on our society with regard to raising awareness on social issues, with regard to bringing news to the people.”
The minister further emphasized the need for improved collaborations, saying, “I believe collaborations need to be improved further because you see the local media needs skill development, the local media needs more growth.”
Tarar noted that Pakistan has tremendous potential, but the local media requires capacity enhancement through greater collaborations with foreign news outlets.
“I believe that hand holding can bring a paradigm change in the local media organizations,” he added.
Pakistan and Saudi Arabia are close regional partners and economic allies. In October last year, both countries signed 34 agreements worth $2.8 billion.
Pakistani dramas and films have also been dubbed and broadcast in Saudi Arabia, including classics like “Dhoop Kinare” and the highly popular TV production “Humsafar.”


Pakistan and Qatar discuss release of prisoners, combating narcotics

Pakistan and Qatar discuss release of prisoners, combating narcotics
Updated 20 February 2025
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Pakistan and Qatar discuss release of prisoners, combating narcotics

Pakistan and Qatar discuss release of prisoners, combating narcotics
  • Around 23,456 Pakistanis are held in jails abroad, including 338 in Qatar
  • Qatar is an important trade partner of Pakistan in the GCC region

ISLAMABAD: Interior Minister Mohsin Naqvi on Thursday met Qatari ambassador Ali Mubarak Ali Essa Al-Khater in Islamabad and discussed the release of Pakistani prisoners from Qatari jails as well as increased cooperation in combating narcotics.
In a report presented last year before the Senate Standing Committee on Human Rights, the foreign ministry said 23,456 Pakistanis were being held in jails abroad including 12,156 in Saudi Arabia, 5,292 in the United Arab Emirates, 338 in Qatar, 519 in Iraq, 450 in Bahrain, 59 in Kuwait, 308 in Turkiye, 255 in Malaysia, 88 in Afghanistan, 100 in Iran and 400 in China.
“During the meeting, matters of mutual interest, bilateral relations, and enhancing cooperation in various fields were discussed in detail,” a statement from the interior ministry said after Naqvi met Al-Khater. “Both sides also discussed the release of Pakistani citizens imprisoned in Qatar. Both sides also agreed to increase cooperation in combating narcotics.”
“Naqvi highlighted that a conference of Gulf countries on Narcotics control is being held in Islamabad in April, and the head of Qatar’s drug control department has been invited to participate in this conference. He emphasized the importance of close cooperation with friendly countries in combating narcotics.”
Qatar is an important trade partner of Pakistan in the GCC region and a major supplier of LNG to the South Asian country. Around 300,000 Pakistanis live in Qatar, working in a variety of sectors, including construction, transportation, health, education, engineering, finance, and public service.
Prime Minister Shehbaz Sharif visited Doha last year and announced that Qatar would invest $3 billion across various sectors in Pakistan, including trade, investment, and culture.


Pakistan to host ‘first-ever’ Digital FDI Summit in Islamabad in April

Pakistan to host ‘first-ever’ Digital FDI Summit in Islamabad in April
Updated 20 February 2025
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Pakistan to host ‘first-ever’ Digital FDI Summit in Islamabad in April

Pakistan to host ‘first-ever’ Digital FDI Summit in Islamabad in April
  • Pakistan this year became first country to adopt Digital FDI Initiative by World Economic Forum, Digital Cooperation Organization 
  • Project aims to boost FDI by promoting digitally friendly business climate, increasing investor interest and activity in Pakistan

ISLAMABAD: Islamabad will host the ‘first-ever’ Digital FDI Summit in Islamabad in April this year, the press information department said this week, as the country aims to boost foreign direct investment by promoting a digitally friendly business climate and increasing investor interest and activity in the country.

Pakistan this year became the first country to adopt the joint Digital Foreign Direct Investment (FDI) Initiative by the World Economic Forum (WEF) and the Digital Cooperation Organization (DCO). The project is structured around four pillars adopted from its Digital FDI framework, digital infrastructure, digital adoption, new digital activities and digital services exports – each targeting areas for growth considered essential for attracting sustained digital FDI in Pakistan.

Cash-strapped Pakistan, currently under a $7 billion International Monetary Fund bailout program and navigating a tricky path to recovery, is seeking to attract foreign investment in a bid to shore up its $350 billion economy. The South Asian nation narrowly avoided defaulting on its financial obligations in 2023 and 2024 with assistance from the IMF. 

“Pakistan will host the first-ever Digital FDI Summit in Islamabad on April 29-30, 2025,” the press information department said in a statement after IT Minister Shaza Fatima Khawaja addressed the Digital Cooperation Organization General Assembly in Amman, Jordan.

“This event will bring together global investors, policymakers, and technology leaders to explore Pakistan’s growing digital economy and investment opportunities.”

Khawaja extended a formal invitation to international stakeholders, urging them to participate in the “landmark event and collaborate on shaping the future of digital investment.”

“She also emphasized Pakistan’s commitment to digital transformation, positioning the country as a premier destination for foreign direct investment in the tech sector,” the statement added. 

The digital FDI initiative, set to launch in April 2025, will be piloted in Pakistan and expanded globally to help countries develop policy frameworks and investment strategies for the digital economy. 

Pakistan has seen 27 percent annual growth in the tech sector and recently introduced the Digital Nation Pakistan Act, a comprehensive framework designed to digitize the economy, governance, and society. In December, the government announced it would set up a National Digital Commission headed by Prime Minister Shehbaz Sharif to oversee the development of digital infrastructure and launch a comprehensive five-year action plan to tackle digital challenges and promote technological investment in Pakistan.

“Khawaja underscored the government’s commitment to creating a digital-first economy, with Prime Minister Shahbaz Sharif personally leading the National Digital Commission to drive the initiative forward,” the statement added.

“A key component of this transformation is the development of Pakistan Stack, a national digital infrastructure aimed at establishing digital identities, streamlining governance, and fostering a secure, inclusive, and innovative digital ecosystem.”