January 4, 2019: Saudi Advisor for Energy & Mineral Resources Ahmad Al Ghamdi has said that both Pakistan and Saurdi Arabia have made good efforts to make their relations stronger than before, during the visit of Saudi business delegation to Karachi Chamber.

Saudi Advisor suggested that the business communities of both countries will have to meet more frequently and participate in trade promotional events being staged in Saudi Arabia and Pakistan, which would result in further strengthening the relations.

He said that Saudi private sector was unaware about the opportunities and they are scared of making investments in Pakistan due to security concerns. “If we keep saying Pakistan is safe and secure, they will not believe us but if someone from Pakistani government comes and guarantees about the safety and security, besides extending full support of the Pakistani government, Saudi investors will certainly get a strong signal that they can come here and make investment in a very pleased environment”, he added.

Ahmad Al Ghamdi said that Saudi Arabia was interested in undertaking renewable energy projects in Pakistan and hopefully, a Saudi company, Aqua Power will soon be visiting Pakistan to introduce its renewable energy technologies including solar, wind and other technologies. “We have also discussed the investment opportunities in Pakistan’s mining sector and in this regard, a Memorandum of Understanding is at final stage which will soon be signed between both the countries, signifying commencement of new relations between Pakistan and Saudi Arabia”, he added.

While referring to a recent meeting of Prime Minister Imran Khan during his visit to Saudi Arabia, he said that during the said Pakistan’s Prime Minister was particularly focused on the visa issues and it has also been raised by other top leaders of Pakistan. “Saudi Arabia is now going through a transformation as many new things and rules have been introduced which will hopefully be beneficial for Pakistan and Saudi Arabia while the ease in issuance of visas is also being discussed”, he added.

Referring to his meeting with Prime Minister’s Advisor Abdul Razzak Dawood around two months ago, Ahmad Al Ghamdi said he discussed some importation and exportation issues which were resulting in trade below the expected range. To resolve these issues a committee has been formed comprising of Saudi and Pakistani representatives to identify the obstacles and devise strategies on how to resolve the same with a view to make things easier.

Saudi government recently agreed to provide $3 billion foreign currency support to Pakistan for a year to address Pakistan's Balance of Payments crisis and a one year deferred payment facility for import of oil, worth up to another $3 billion.

During 2017, goods worth $400.8 million were exported to Saudi Arabia while the imports stood at $2.73 billion, indicating trade balance in favor of Saudi Arab by $2.32 billion.

While highlighting the huge potential to enhance trade and investment ties, President KCCI Junaid Makda informed the Saudi delegates that Pakistan's investment policy provides a comprehensive framework for creating a conducive business environment. It entails reducing the cost of doing business, reducing the processes of doing business, and emphasizes on creation of industrial clusters and Special Economic Zones.

Saudi companies can choose between setting-up a liaison office, branch office or incorporate a Pakistani company as either its wholly owned subsidiary or joint venture with a Pakistani / overseas partner, he added.

He further mentioned that Karachi and Sindh can offer a host of opportunities in many potential sectors including food processing, dairy production and processing, coal mining and mineral extraction, sea food processing, Urban Rapid Transport, date and mango farming and processing, wind and solar energy.

Underscoring the need to make collective efforts, he suggested signing a Memorandum of Understanding between KCCI and its peer Chambers in Saudi Arabia in order to pave way for improved trade relations between the two countries.

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