Pakistan, Saudi Arabia vow to boost trade, investment

ISLAMABAD (News Desk): Pakistan and Saudi Arabia have reaffirmed their commitment to translate their longstanding brotherly ties into deeper economic partnership, with a focus on expanding bilateral trade, investment and agricultural cooperation.

The resolve came during a meeting between Federal Minister for Commerce Jam Kamal Khan and the newly appointed Ambassador of the Kingdom of Saudi Arabia to Pakistan, H.E. Dr. Rajeh Albugamy, at the Ministry of Commerce in Islamabad on Saturday.

Welcoming the Saudi envoy, Jam Kamal Khan said Pakistan attaches special significance to its relations with Saudi Arabia as custodian of the Haramain Sharifain and a trusted brotherly country. He said the Government of Pakistan has made sustained efforts over the past three years to further strengthen bilateral relations through enhanced government-to-government (G2G), business-to-business (B2B) and people-to-people (P2P) engagement.

The Commerce Minister emphasized that the historic relationship offers considerable untapped potential for greater economic integration, particularly in view of Saudi Arabia’s economic diversification drive under Vision 2030 and Pakistan’s growing production and industrial capabilities.

He highlighted that Vision 2030, which aims to reduce Saudi Arabia’s dependence on oil and diversify into sectors including manufacturing, tourism, logistics, agriculture and technology, creates natural complementarities with Pakistan’s strengths in textiles, food and agriculture, leather, surgical goods, manpower and industrial production.

Jam Kamal noted that there is immense scope for cooperation in scaling up production, improving product quality, adopting modern technologies and strengthening industrial competitiveness. He said collaboration in these areas could enable Pakistani businesses to better meet the requirements and standards of the Saudi market while creating mutually beneficial economic opportunities for both sides.

The Minister also underscored the importance of expanding Pakistan’s export base and strengthening private-sector partnerships to translate the growing economic engagement into tangible trade outcomes. He said the Ministry of Commerce is focused on facilitating business linkages, addressing market access issues and promoting Pakistani products in the Saudi market through trade exhibitions and B2B meetings.

During the meeting, Ambassador Dr. Rajeh Albugamy reaffirmed the enduring bonds of brotherhood between the two countries and assured continued support for strengthening bilateral economic relations. He congratulated Pakistan on its economic reform efforts and highlighted opportunities for enhanced regional connectivity and cooperation.

The Saudi envoy particularly pointed to the agriculture sector as a promising area for cooperation, noting Saudi Arabia’s interest in ensuring food security and investing in agricultural value chains abroad. Pakistan, being an agrarian economy with vast arable land and a large livestock sector, can play an important role in this regard.

Both sides also discussed the Pakistan-Gulf Cooperation Council (GCC) Free Trade Agreement and emphasized its early signing and implementation. The Minister noted that the agreement would provide an important opportunity to enhance market access, expand bilateral trade and strengthen economic engagement not just with Saudi Arabia but with the entire GCC bloc.

The Pakistan-GCC FTA has been under negotiation for several years and is seen as a key instrument to boost Pakistan’s exports to the Gulf region, which hosts a large Pakistani diaspora and is a major destination for Pakistani goods and manpower. Early finalization of the agreement is expected to give preferential access to Pakistani products and attract Saudi investment into Pakistan.

The Saudi Ambassador expressed his commitment to maintaining close engagement with the Ministry of Commerce to facilitate greater economic cooperation and identify new avenues for mutually beneficial partnerships. He said the Saudi Embassy will work closely with the Ministry and the private sector to follow up on the proposals discussed.

Both sides agreed to maintain regular coordination and follow-up engagement to advance bilateral trade, investment and agricultural cooperation, with a shared objective of translating their longstanding friendship into stronger economic ties.

Officials said Pakistan’s exports to Saudi Arabia have potential to grow significantly beyond the current level, which remains below its true potential given the size of the Saudi economy and the presence of over 2.5 million Pakistanis in the Kingdom. Key export items include rice, meat, fruits and vegetables, textiles, and construction materials, while Pakistan imports mainly petroleum products and chemicals from Saudi Arabia.

The meeting is part of ongoing diplomatic and economic outreach as Pakistan seeks to deepen ties with Gulf countries to attract foreign direct investment, boost exports and ensure economic stability. Saudi Arabia has been a key partner in supporting Pakistan through financial assistance, oil facilities and investments in recent years.

The Commerce Ministry said it will continue to work with the Saudi side to organize the next session of the Joint Ministerial Commission and business forums to provide a structured platform for trade and investment promotion.