ISLAMABAD: A high-level Saudi business delegation, led by Prince Mansour bin Mohammad Al-Saud, is set to arrive in Pakistan this week to explore potential investment opportunities—marking what Islamabad hopes will be the beginning of a broader economic partnership following last month’s mutual defence agreement between the two nations.
Officials anticipate an initial investment package worth around $1 billion, possibly through the establishment of a new investment fund aimed at strengthening economic ties alongside existing military cooperation. Under the recent defence pact, Pakistani forces are expected to be stationed in Saudi Arabia, with Riyadh reportedly viewing Islamabad’s nuclear capability as a strategic safeguard amid rising regional tensions.
According to officials, the visiting delegation will focus on potential investments in technology, sports equipment manufacturing, and food and agriculture sectors, and is expected to meet Prime Minister Shehbaz Sharif during the visit. Islamabad, meanwhile, is seeking larger Saudi investments in state-owned enterprises and the establishment of a petrochemicals complex.
Saudi interest in Pakistan’s mining sector, particularly in acquiring a stake in the multibillion-dollar Reko Diq copper-gold project, is also being revived. Analysts, however, caution that substantial Saudi investments are likely to follow only after Pakistan implements key economic reforms to improve transparency, ease currency controls, and enhance the ease of doing business.
“Saudi Arabia wants to invest heavily, but only after Pakistan ‘cleans up its house’ and develops feasible project structures,” said Umer Karim, a researcher at the University of Birmingham.
Observers note that any Saudi financial injection will draw close scrutiny from India, given the historical rivalry between the two nuclear-armed neighbours. Pakistan’s defence spending currently stands at roughly one-seventh of India’s, with economic constraints limiting Islamabad’s ability to expand its military capabilities.
While previous Saudi investment pledges have failed to materialize, Islamabad remains optimistic that this visit will pave the way for tangible economic cooperation aligned with the evolving strategic partnership between the two nations.
By Reuters
