Saudi capital targets Pakistan’s dormant government assets
KARACHI: A proposed Saudi-Pakistan Private Equity Fund could open a new avenue for monetizing Pakistan’s underutilized government land and converting dormant public assets into commercially productive investments, as Saudi and Pakistani investors move towards a new framework for bilateral economic cooperation.
The Saudi-Pakistan Joint Business Council has signed a Memorandum of Understanding (MoU) for establishing the fund, with an initial proposed size of several hundred million dollars.
Under the proposed arrangement, Saudi and Pakistani private investors will contribute equally to the fund, while 75 per cent of its investment will be directed towards Pakistan and the remaining 25 per cent towards Saudi Arabia.
According to the announcement, the fund will explore investment opportunities in commercial projects emerging from the Government of Pakistan’s land bank, potentially transforming underutilized public land into income-generating economic assets.
The proposed investment areas include agriculture, mining, construction and major infrastructure projects. Airports, motorways, ports and maritime-sector developments are also among the identified priorities.
The initiative could create opportunities for private capital to participate in commercially viable infrastructure projects while unlocking the economic potential of government-owned assets.
However, the proposed land monetization programme also raises important questions regarding the identification, valuation and allocation of public land, as well as the transparency of investment agreements and the distribution of returns.
Saudi Prince Mansour bin Mohammed Al Saud said Pakistan has genuine investment opportunities and described the country as a natural partner for Saudi Arabia.
He said Saudi investors are willing to invest in Pakistan with confidence, adding that joint investments would benefit people in both countries and establish a lasting economic partnership.
Businessman Arif Habib described the proposed fund as an expression of confidence in profitable investment opportunities in Pakistan.
He said outdated perceptions about Pakistan had previously obscured its actual economic potential, but serious investors are now prepared to move towards practical investments.
Habib also said the monetization of the government’s land bank could transform dormant assets into productive investments.
The fund’s establishment will proceed after fulfilling the regulatory requirements of both countries, while its size could be expanded in the future.
The proposed initiative marks a potential shift towards private-sector-led investment, although its actual economic impact will depend on financial commitments, project selection, transparent governance and the timely execution of investments.