Saudi Arabia, UAE plan huge investment in Pakistan: Razak Dawood

Saudi Arabia, UAE plan huge investment in Pakistan: Razak Dawood

Saudi Arabia and the United Arab Emirates (UAE) are gearing up for substantial investments in the country, according to Abdul Razak Dawood, the Adviser to the Prime Minister on Commerce and Textile.

This announcement was made during a media briefing after a meeting with members of the Overseas Investors’ Chamber of Commerce and Industry (OICCI) on Friday.

Dawood shared that Saudi Arabia is considering the establishment of an oil refinery in Gwadar, a key port city in Pakistan. Simultaneously, the UAE is also in the planning stages for setting up an oil refinery. These initiatives reflect a growing interest from these Gulf nations in contributing to Pakistan’s economic development.

He further highlighted that discussions with China are underway to encourage investments that foster local production and export capabilities. The government is actively working to improve Pakistan’s Ease of Doing Business ranking, currently at 136, with a target set by Prime Minister Imran Khan to elevate it to 100.

“Pakistan needs investment, and the best investment is one that produces here and also exports from here,” Dawood emphasized. This approach aligns with the government’s focus on enhancing the country’s export potential and reducing dependency on imports.

Acknowledging the challenging economic conditions inherited by the PTI government, Dawood noted that positive strides were being made. Export figures are on the rise, and there is a noticeable decline in imports. He expressed optimism, stating that within the next six months, a visible reduction in the trade deficit is anticipated.

Dawood also addressed the recent increase in the discount rate, attributing it to monetary tightening measures. These steps, while impacting the cost of borrowing, are aligned with broader economic strategies aimed at stabilizing the financial environment and fostering sustainable growth.

The prospect of significant investments from Saudi Arabia and the UAE adds a new dimension to Pakistan’s economic outlook. Gwadar’s potential as a key location for an oil refinery underscores the strategic importance of the port city in the China-Pakistan Economic Corridor (CPEC) and the broader Belt and Road Initiative.

These developments are part of a broader trend where countries are recognizing Pakistan’s economic potential and showing interest in becoming key stakeholders in its growth story. The collaborations with Saudi Arabia, the UAE, and ongoing discussions with China are indicative of a concerted effort by the Pakistani government to diversify its economic partnerships and attract foreign investments.

As these plans materialize, it is expected that they will not only contribute to economic growth but also play a pivotal role in creating job opportunities, fostering technology transfer, and enhancing Pakistan’s standing in the global economic landscape. The coming months will likely witness further developments as these investments take shape and contribute to Pakistan’s journey towards economic prosperity.