Investment, not aid, to define future Pakistan, KSA relations

February 10, 2026 (MLN): Pakistan and Saudi Arabia are moving to recalibrate their longstanding relationship toward trade and investment led growth, with cooperation expanding across sectors including mining, information technology, agriculture and tourism despite wider geopolitical uncertainties.

The partnership is increasingly being shaped by private-sector activity and long-term commercial projects rather than short-term financial assistance.

Speaking to Arab News on the sidelines of the AlUla Conference for Emerging Market Economies, Pakistan’s Finance Minister Mohammed Aurangzeb described the Kingdom as a “longstanding partner” and referred to recent discussions with Saudi Minister of Economy and Planning Faisal Alibrahim on deepening economic collaboration and unlocking new opportunities.

Finance Minister Aurangzeb pointed to an active pipeline of Saudi investments already materializing in Pakistan, including Wafi Energy’s entry into the downstream oil and gas retail sector, as a sign of growing investor confidence.

He noted that while government-to-government engagement remains focused largely on infrastructure, private businesses are leading expansion across priority industries.

Addressing past investor concerns over bureaucracy and delays, he said Pakistan has spent the past two years implementing structural reforms, strengthening fiscal discipline and improving the overall business climate to create a more predictable investment environment.

He also highlighted mining and refining including continued dialogue around the Reko Diq project as important areas of engagement, stressing that talks with Saudi investors go beyond single ventures.

Growing cooperation in technology and artificial intelligence was another focus, with several Pakistani firms already in discussions with Saudi counterparts or operating offices in the Kingdom.

The minister added that Pakistan’s large freelance workforce presents additional opportunity if skills development keeps pace with demand, alongside potential collaboration in energy expertise and defense production as Islamabad seeks to anchor ties with Riyadh in sustainable economic partnership rather than reliance on aid.

Copyright Mettis Link News