KARACHI: Pakistan is eyeing investment opportunities in the Saudi and Middle Eastern markets in the Information Technology sector, caretaker minister for IT Dr. Umar Saif said on Thursday, hoping the sector’s exports could swell to about $10 billion in the short term.
The minister was speaking at a three-day exhibition titled ‘Declaring Pakistan the Regional ICT Hub’ at Karachi’s Expo Center where he spoke of Pakistan’s immense potential in the domestic and international IT market, saying that its population comprised educated and tech savvy youth.
“At this point, my highest priority is to make sure that our youth gets better skills, that they’re able to contribute to the domestic economy, and to the emerging investments and opportunities in the Middle Eastern market,” Saif told Arab News at the sidelines of the event.
“We are working closely with the Saudi market, we’re working closely with the Middle Eastern market,” he said, adding that Pakistan was also eyeing markets in Africa.
“What we do here in terms of software production, in terms of handset manufacturing, in terms of competitiveness for telecom operators, will have huge implications for the growth of the local economy as well as our export potential.”
Saif said Pakistan’s current IT exports did not reflect its real exports as many companies were not bringing export proceeds to the country.
“Currently, the IT industry employs about 150,000 people and has an export of about $2.6 billion,” he said. “I think the actual export is more than this because a lot of It companies— because these are service companies— park their money outside of Pakistan because they find it difficult to bring it to Pakistan.”
Saif said by addressing IT-related issues, the government can encourage Pakistani IT companies to bring export proceeds back to the country instead of maintaining offshore offices. He said Pakistan’s annual IT exports could be increased to $3.5 billion through these measures.
The minister said Pakistan can boost its exports from $2.6 billion to about $10 billion in the short term by undertaking strategic interventions in the IT industry and online freelancing, to make sure the youth are upskilled and contributing to the IT sector.
Speaking at the event earlier, Saif said Pakistan’s IT ministry will train 100,000 software developers through a partnership program with a private company, adding that the trainings would help enhance exports by $2 billion per annum.
To achieve this, he said various programs and boot camps would be organized to enhance the capacity of university graduates in accordance with skills that were required by the IT industry.
Saif said introduction of a de-risking mechanism for venture capital could bring back the investment trend in the country’s startup culture. “The ministry is planning to launch a fund of funds with 30 percent equity of the government,” he said.
Over 400 brands, including a Saudi-based multinational Unifonic showcased their products at the exhibition. Unifonic is involved in managing conversation platforms and AI-based voice chatbot solutions.
“We have started our operations and we see Pakistan as a big market because it’s a country with 225 million people, a very vibrant and upcoming ecommerce scenario from our perspective,” Khurram Rahat, senior country director of Unifonic, told Arab News.
The organizers of the exhibition expect over 35,000 visitors to attend the event during the three days.
Pakistan ‘working closely’ with Saudi, Middle East markets on IT investments — minister
https://arab.news/g35ku
Pakistan ‘working closely’ with Saudi, Middle East markets on IT investments — minister
- IT minister says with strategic interventions, IT exports in short term can be increased from $2.6 billion to about $10 billion
- Urges Pakistani IT companies to bring export proceeds back to the country instead of maintaining offshore offices
PIF launches commercial paper program to diversify funding sources
RIYADH: Saudi Arabia’s Public Investment Fund has launched its first commercial paper program, introducing a new tool to diversify its funding sources and enhance short-term liquidity management.
A commercial paper is a debt instrument used to raise short-term funding, offering faster access to funds than traditional loans. It is widely used in global financial markets, offering PIF greater flexibility in meeting its needs while aligning with its dynamic investment priorities.
The CP program will enable PIF to issue short-term debt through offshore special-purpose vehicles, enhancing its liquidity management and complementing its long-term capital-raising initiatives.
According to a press release, the initiative, which includes US and Euro CP sub-programs, has received top-tier credit ratings of Prime-1 from Moody’s and F1+ from Fitch, underscoring its strong financial standing.
PIF has consistently demonstrated its ability to pioneer new financial instruments. In 2022, it became the first sovereign wealth fund globally to issue a green bond, including a landmark century green bond, followed by a successful $3.5 billion sukuk issuance, according to the fund.
PIF’s Head of Global Capital Finance and Investment Strategy and Economic Insights, Fahad Al-Saif, emphasized the program’s role in strengthening the fund’s resilient and adaptive financial framework.
“The establishment of our CP program reflects the continued strength and depth of PIF’s capital raising strategy; one that is dynamic, resilient, and fit for purpose, aligning funding solutions with our long-term investment priorities,” he said.
In a press release, Moody’s Ratings said that the programs will operate under newly established special purpose vehicles, CPDE Investment Co. and CPNL Investment Limited.
“PIF has an excellent liquidity profile,” Moody’s said in its rating rationale, citing the fund’s cash reserves of SR106 billion ($28 billion) and undrawn credit facilities as key strengths.
According to the agency, the USCP program will support maturities of up to 397 days, while the ECP program will cover maturities of up to 364 days, with proceeds earmarked for general corporate purposes.
PIF is Saudi Arabia’s primary investment arm, tasked with advancing economic transformation under Vision 2030. Through strategic partnerships and investments, the fund aims to build future-ready industries, create employment opportunities, and promote sustainable development.
As the driving force behind Saudi Arabia’s Vision 2030, PIF has established 103 companies since 2017, fostering economic diversification and sustainability.
Saudi Vision 2030 puts government performance at heart of economic growth drive, says minister
RIYADH: Saudi Arabia’s Vision 2030 prioritizes enhancing the performance of government bodies and institutions across the public, private, and non-profit sectors, recognizing their vital role in driving economic growth, according to the Kingdom’s economy minister.
Speaking at the 7th edition of the King Abdulaziz Quality Award, Minister of Economy and Planning Faisal Alibrahim, who also chairs the award’s supervisory committee, said the initiative boosts competitiveness and strengthens the investment climate.
It also drives economic complexity and broadens the reach and quality of services both locally and globally — ultimately generating high-value jobs for the Saudi population, the Saudi Press Agency reported.
This aligns with the Kingdom’s progress in the 2024 World Competitiveness Yearbook published by the Swiss-based Institute for Management Development, which ranked Saudi Arabia 16th out of 67 of the world’s most competitive countries. The business efficiency axis, in particular, advanced from 13th to 12th place.
The overall ranking marked a one-position improvement for the Kingdom, driven by gains in business legislation and infrastructure, placing the Kingdom 4th among G20 countries.
“Today, we celebrate national institutions that have proven that institutional excellence is not a slogan, but rather a strategic choice and a consistent management approach,” Alibrahim said in his remarks during the event.
He added: “The King Abdulaziz Quality Award is not just an occasion for recognition, but rather an ongoing journey to create models, stimulate performance, and raise the ceiling of institutional ambition.”
Alibrahim highlighted the role of the Saudi National Model for Institutional Excellence, which he described as a practical tool for enhancing capabilities, improving performance, and maximizing institutional impact.
The model is a framework that promotes organizational excellence across key sectors, using the King Abdulaziz Quality Award as a benchmark.
It focuses on leadership, strategic planning, and measurable outcomes in areas like academic quality and stakeholder satisfaction, guided by scientific methods and national standards.
Prince Mohammed bin Turki bin Abdullah, secretary-general of the King Abdulaziz Quality Award, said the initiative serves as a national platform to promote positive competition and consolidates the principles of governance.
A total of 63 organizations were recognized across gold, silver, and bronze categories for their application of high standards in quality, governance, and innovation.
The gold-level government winners included the Ministry of Health, the Ministry of Human Resources and Social Development, the Saudi Industrial Development Fund, and the General Organization for Social Insurance. Other winners included the Ministry of Transport and Logistics, the Royal Commission for AlUla, and the Council of Cooperative Health Insurance.
Thirty-four entities were awarded at the bronze level following a comprehensive evaluation process that measured performance, efficiency, and commitment to continuous improvement.
Saudi Arabia’s quality award program mirrors similar efforts in more than 90 countries and reflects the Kingdom’s ambition to embed institutional excellence into its economic model.
The King Abdulaziz Quality Award is positioned as the national benchmark for organizational performance, aiming to drive sustained development across key sectors.
IMF warns US strikes on Iran could disrupt global economy
JEDDAH: The International Monetary Fund has warned that US airstrikes on Iran could amplify global economic uncertainty, with potential spillovers far beyond energy markets, its head told Bloomberg on Monday.
IMF Managing Director Kristalina Georgieva said that the fund is closely monitoring the situation in the Middle East, particularly the impact of the conflict on oil and gas prices and supply routes.
Georgieva’s remarks come after the US military conducted targeted strikes on nuclear facility sites in Iran, effectively involving itself in Israel’s campaign to dismantle the country’s nuclear program, despite Tehran’s threats of retaliation that could spark a wider regional conflict.
US President Donald Trump stated that Iran’s key nuclear sites were “completely and fully obliterated” and warned the country against retaliatory attacks, asserting that the US could strike additional targets “with precision, speed and skill.”
Georgieva told Bloomberg that the IMF are looking at this “as another source of uncertainty in what has been a highly uncertain environment” adding that the institution is watching for two things: “One, how would that impact risk premia for oil and gas. There has been some movement upward— how far would it go? And two: would there be any disruption in energy supplies?”
She went on: “For now, no. But let’s see how events would develop— whether either delivery routes or spillovers to other countries may occur. I pray, no.”
The development saw Brent crude briefly rising by as much as 5.7 percent to $81.40 per barrel during early Asian trading on June 23 before retreating, according to Bloomberg.
When asked whether the transmission mechanism, specifically the channels where she sees the greatest impact of the Middle East shock, is currently reflected in energy prices, the managing director confirmed that it is.
“There could be secondary and tertiary impacts. Let’s say there is more turbulence that goes into hitting growth prospects of large economies, and then you have a trigger impact in a downward revision in prospects for global growth,” she told Bloomberg.
“As you know, we have already revised downward growth projections for this year, and we will be coming up with our next projections in July.”
Georgieva continued: “What we see in the first two quarters of the year broadly confirms the picture we painted in April, and it is somewhat slower global growth, but no recession.”
The IMF’s April report sounded a warning over the weakening global economy, sharply downgrading growth forecasts from January projections.
The fund identified surging trade tensions, record-high tariff levels, and rising policy unpredictability as key threats to both short- and long-term economic stability.
Oman to be first Gulf country to impose personal income tax
- Tax would apply to about 1% of population
- It will impose 5% levy on taxable income for individuals earning over 42,000 rials
RIYADH: Oman will become the first country in the Gulf to impose a personal income tax, as the oil producer works to diversify its revenue stream.
The sultanate will impose a 5 percent levy on taxable income for individuals earning over 42,000 Omani rials ($109,091) per year starting from 2028, according to a royal decree.
The Gulf country added that the tax would apply to about 1 percent of the population.
The move comes after Oman launched a medium-term fiscal program in 2020 to reduce public debt, diversify revenue sources, and spur economic growth, which has improved state finances.
“The law also includes deductions and exemptions that take into account the social situation in the Sultanate of Oman, such as education, health care, inheritance, zakat, donations, primary housing,” the country’s tax authority said in a statement.
The law was implemented following an “in-depth study to assess the economic and social impact,” and income data collected from various government entities was used to set the exemption threshold.
“The results showed that approximately 99 percent of the population in the Sultanate of Oman is not subject to this tax,” the authority said.
The statement added that the electronic system has been designed to enhance voluntary compliance and is linked with relevant institutions to ensure accurate calculation of individuals’ income and to verify the accuracy of submitted tax returns.
The tax will contribute to achieving social solidarity and will not include wealth, such as land ownership. It will be imposed on the annual income specified by law and includes “all cash amounts and in-kind benefits received by the individual,” the authority said.
The move aims to complete the tax system in line with the economic and social situation in the sultanate, and the tax revenue will go toward supporting the social protection program, “with sustained cooperation,” it added.
The move will support the objectives of Oman Vision 2040, which targets reducing dependence on oil by achieving 15 percent of gross domestic product from non-oil sources by 2030 and 18 percent by 2040.
“It will also contribute to achieving social justice by redistributing the wealth among the segments of society, provide support to the general budget of the country, and be directed in particular to finance part of the costs of the social protection system,” the authority said.
Saudi Arabia’s non-oil industrial production up 5.3% in 2024: GASTAT
- Industrial Production Index declined 2.3%, driven by 5.2% contraction in oil-related activities
- Mining and quarrying sector, which includes oil extraction, saw decline of 6.8%
RIYADH: Saudi Arabia’s non-oil industrial activities posted robust growth of 5.3 percent in 2024, highlighting the success of the Kingdom’s economic diversification efforts under Vision 2030.
The overall Industrial Production Index however declined by 2.3 percent, driven primarily by a 5.2 percent contraction in oil-related activities, according to the latest report from the General Authority for Statistics.
Saudi Arabia’s growing non-oil industrial output reflects progress in diversifying revenue and jobs beyond oil, a key Vision 2030 goal.
Reforms such as easier licensing, tax incentives, and mega projects are driving growth in manufacturing, logistics, and technology. While oil remains volatile, the expansion is showing early success in the private sector, driven by growth in foreign direct investment.
During the Davos Conference in January, Saudi Minister of Economy and Planning Faisal Al-Ibrahim said that the non-oil economy is expected to grow by 4.8 percent this year.
The latest figures from GASTAT show that manufacturing played a pivotal role in driving growth in 2024, recording a 4.7 percent annual increase. Food production expanded by 6.2 percent, while the manufacture of chemicals and chemical products,, and coke and refined petroleum goods increased by 2.8 percent.
The mining and quarrying sector, which includes oil extraction, saw a decline of 6.8 percent in 2024. This drop offsets gains in other areas, pulling the overall IPI into negative territory for the year.
The report also revealed positive trends in utilities and infrastructure-related sectors. Electricity, gas, steam, and air conditioning supply activities grew by 3.5 percent, while water supply, sewerage, and waste management services increased by 1.6 percent.
Saudi endeavors in non-oil exports
The Kingdom’s non-oil export sector has also seen impressive growth, reinforcing diversification efforts.
According to official data released in April, Saudi Arabia’s non-oil exports reached SR515 billion ($137 billion) in 2024, a 13 percent increase from the previous year and a 113 percent rise since the launch of Vision 2030.
This expansion spanned all export sectors, with merchandise exports rising to SR217 billion, driven by petrochemical and non-petrochemical goods.
The Kingdom now exports to over 180 countries, with 37, including the UAE, France, and Indonesia, registering record imports, solidifying its role as a growing global trade hub.
