Pakistan's President solicits Saudi investment, lauding Riyadh's backing during crucial periods.
In a recent development, President Asif Ali Zardari has extended invitations to Saudi businesses to invest in Pakistan, highlighting opportunities that leverage the country's strategic location, young population, and improving economic conditions.
The President made these remarks during a meeting with Saudi Ambassador Nawaf bin Said Al-Malki in Islamabad. The meeting was an opportunity for both leaders to discuss ways to further strengthen Pakistan's economic relations with Gulf countries, including Saudi Arabia.
Zardari called for deeper engagement between Pakistan and Saudi Arabia on regional and international forums. He expressed appreciation for Riyadh's continued support and emphasized Saudi Arabia's critical role in helping Islamabad through difficult times, particularly in the past when Saudi financial assistance was critical in preventing a sovereign default.
The President's remarks were made to attract foreign investment to strengthen Pakistan's economy. In this regard, the government promotes investment through the Special Investment Facilitation Council (SIFC), established in 2023, which targets sectors such as minerals, IT, tourism, agriculture, and livestock.
Pakistan and Saudi Arabia have deep-rooted and historic relations based on shared faith and mutual trust. This relationship has been further strengthened by recent investments, with Saudi Arabia depositing $2 billion into Pakistan's central bank in June 2023 to bolster foreign reserves.
The country is presenting robust investment opportunities, particularly in real estate, energy, IT, agriculture, and commercial sectors. Key opportunities include:
- Real Estate: Prime cities like Lahore, Islamabad, Karachi, and Murree are highlighted for strong real estate investment potential, driven by new housing societies, reduced stamp duties, and rising demand in tourism-linked areas like Murree.
- Energy Sector: The government’s new energy policy enabling private companies to bid for 35% of future gas discoveries has resulted in a surge of energy-sector FDI, with $86.32 million invested in June 2025 alone. Privatization of power assets is also underway, making energy a critical area for investment.
- Technology and Services: The services sector, especially IT and tourism, is growing due to lower borrowing costs and improved foreign exchange access, with Pakistan aiming to leverage its young demographic and growing digital economy.
- Agriculture & Livestock: Traditional sectors like agriculture have seen renewed momentum because of favorable weather forecasts and reduced input costs, while livestock is also targeted by SIFC for investment.
- Commercial and Industrial Ventures: Karachi offers commercial property investment opportunities, though the industrial sector currently faces challenges such as energy shortages and circular debt that need addressing.
President Zardari’s invitations to Saudi business circles align with these strategic sectors, encouraging Saudi investors to capitalize on Pakistan’s economic stabilization, reform efforts, and large consumer base as part of bilateral economic cooperation.
In October 2024, Pakistan signed 34 memorandums of understanding worth $2.8 billion with Saudi Arabia, as part of Islamabad’s broader push to accelerate its economic recovery through export-led growth and foreign investment. The country continues to strive to further strengthen its economic relations with Gulf countries, including Saudi Arabia, as its macroeconomic indicators improve.
- President Zardari's invitations to Saudi businesses to invest in Pakistan emphasize opportunities in the country's strategic location, young population, and improving economic conditions, particularly in sectors such as real estate, energy, IT, agriculture, and livestock.
- The government promotes investment through the Special Investment Facilitation Council (SIFC), established in 2023, which targets these very sectors, including minerals, IT, tourism, agriculture, and livestock.
- Zardari's remarks were made with the aim to attract foreign investment, and his call for deeper engagement between Pakistan and Saudi Arabia could lead to significant financial investments in the news-worthy business sector.
- The Pakistan-Saudi Arabia relationship, strengthened by recent investments, is expected to reap benefits in the finance, economy, and business sectors, as Saudi Arabia continues to extend support to Pakistan, particularly in times of economic difficulty.
