RIYADH: Saudi Arabia’s Investment Minister, Khalid Al-Falih said he plans to allocate a part of the country’s $ 200 billion annual construction and material procurement contracts to Pakistan. During his visit to Islamabad, he revealed the news of finalising $ 2 billion in business deals.
Saudi Arabia is at the forefront of becoming the world’s largest construction market, with investments paving the way to diversifying the economy. The Kingdom’s construction output is set to rise to $ 181.5 billion 2028, a 30% jump from 2023, according to a report from Knight Frank. The country will be awarding $ 1.8 billion worth of contracts in the coming years, Al-Falih stated. Contracts are predicted to go up from $ 180 billion to $ 200 billion annually, for this year alone. A primary portion of these contract will consist of imports for which Pakistan will be the preferred partner.
Pakistan, currently facing an economic crisis and low foreign exchange rates, is looking to strengthen its trade and investment ties with Saudi Arabia. Both countries have recently enhanced their cooperation with Saudi Arabia committing a $ 5 billion investment package for Pakistan.
Al-Falih will be signing 25 agreements covering investments in Pakistan’s construction, mining, agriculture and technology sectors, during this visit. Al-Falih, accompanied by 130 member delegation, will meet Pakistan’s officials and business leaders to explore further collaboration.
A $ 7 billion International Monetary Fund (IMF) bailout for Pakistan also cleared the way for this visit, that requires the country to implement reforms for economic stability. The IMF urged the need to continue international support to provide for Pakistan’s structural challenges.
