Pakistan targets Saudi capital inflows

January 19, 2026 (MLN): Pakistan is seeking to deepen Saudi investment in key sectors, including the privatization of airports and state-owned enterprises, as part of broader efforts to attract foreign capital.

The government is working to consolidate macroeconomic stability and revive investor confidence amid easing interest rates.

A growing pipeline of public listings is also being positioned as a key opportunity for Saudi investors.

These priorities were discussed when Finance Minister Senator Muhammad Aurangzeb met Saudi Finance Minister Mohammed Aljadaan.

The meeting took place on the sidelines of the World Economic Forum (WEF) Annual Meeting 2026 in Davos, where both sides reviewed Pakistan’s economic outlook and ways to expand bilateral economic cooperation.

Aurangzeb briefed his Saudi counterpart on improving macroeconomic indicators, noting foreign exchange reserves covering about three months of imports, a gradual decline in interest rates, and reaffirming the State Bank of Pakistan’s independence in setting monetary policy.

He said economic growth reached 3.1% last year and accelerated to 3.7% in the first quarter of the current fiscal year, with the government focused on maintaining a sustainable current account alongside steady GDP expansion, according to the press release.

The finance minister pointed to renewed capital market activity, noting that 16 initial public offerings are currently in the pipeline after nine IPOs last year, alongside the entry of more than 120,000 new investors into the market.

He said the developments showed improving investor sentiment and growing confidence in Pakistan’s economic direction.

External sector support was highlighted through rising remittance inflows, which are expected to increase from $38bn last year to over $41bn this year, along with continued growth in IT services exports that are contributing positively to the current account.

Saudi Arabia remains one of Pakistan’s largest sources of remittances and a key economic partner.

On structural reforms, Aurangzeb outlined progress on privatization, including recent foreign investment in a digital venture and ongoing work related to Pakistan International Airlines, according to the press release. 

He said the government plans to proceed with the phased privatization of selected power distribution companies and major airports in Islamabad, Lahore and Karachi, under the supervision of a professional team at the Privatization Commission.

Saudi Finance Minister Mohammed Aljadaan shared the Kingdom’s experience with privatization reforms, citing the conversion of Saudi airports into revenue-generating assets as an example of how a consistent approach can deliver long-term fiscal and economic gains.

The engagement underscores Pakistan’s efforts to attract Gulf investment to support growth, strengthen foreign exchange inflows and advance structural reforms, as Saudi Arabia continues to expand its regional investment footprint under its broader economic diversification strategy.

Copyright Mettis Link News