Saudi Arabia and Pakistan Strengthen Ties with Increased Memorandums of Understanding

Saudi Arabia’s Minister for Investment announced an increase in signed agreements with Pakistan from 27 to 34, with five already operational, during the Future Investment Initiative in Riyadh. This reflects deepening bilateral ties aimed at economic support and collaboration in sectors such as healthcare and agriculture.

On Wednesday, Saudi Arabia’s Minister for Investment, Sheikh Khalid Bin Abdul Aziz Al Faleh, announced during the Future Investment Initiative (FII) event in Riyadh that the number of memorandums of understanding (MoUs) signed with Pakistan has increased from an initial 27 to 34, with five of these agreements already becoming operational. This increase followed a productive visit to Pakistan by a Saudi delegation in October, during which MoUs worth a total of $2.2 billion were established. Sheikh Khalid stated, “When we came to Pakistan we concluded, in three days, 27 MOUs at 2.2 billion dollars, and I mentioned at that time during various events that this was only the beginning. And to prove that, here we are — two or three weeks later — and I’d like to announce that the number has increased from 27 MOUs and agreements to 34.” He elaborated that the estimated funding had now risen to $2.8 billion, although some agreements remain unvalued as the Pakistani government is still determining their respective worth. The minister highlighted that of the original 27 agreements, five are already operational and yielding positive results for both nations. Some of these agreements have stimulated exports, particularly in the agricultural sector. Furthermore, additional projects include the establishment of healthcare facilities, with Saudi investors having commenced plans for a comprehensive medical complex in Pakistan. During the same event, Pakistani Prime Minister Shehbaz Sharif expressed his gratitude to the Saudi leadership for their support, emphasizing the productive nature of their recent meetings. He remarked, “The meetings last night have been really reassuring and on the MOUs signed a few weeks ago in Islamabad — the ink hasn’t dried, and implementation has started.” This partnership underscores the robust historical ties between Pakistan and Saudi Arabia, which extend beyond investment to encompass cultural, economic, and defense collaborations. In previous engagements, including PM Shehbaz’s initial official visit to Saudi Arabia, both nations agreed to expedite a $5 billion investment package aimed at bolstering Pakistan’s economy amid challenging circumstances. Saudi Arabia has repeatedly demonstrated its support for Pakistan during financial crises, notably by depositing $2 billion into the State Bank of Pakistan to assist in securing an IMF bailout.

The recent announcements regarding the increase in MoUs between Pakistan and Saudi Arabia reflect the ongoing and deepening bilateral relations between the two nations. The partnership extends across various sectors, highlighting the mutual benefits derived from cooperation in investment and trade. The agreements cover crucial areas such as healthcare and agriculture, illustrating a commitment to fostering economic growth and stability in Pakistan amid its economic challenges. Saudi Arabia has historically supported Pakistan, particularly during financial crises, thus exemplifying a resilient bond that is expected to yield further positive outcomes.

In summary, the recent developments highlighted by Saudi Arabia’s Minister for Investment signify a promising escalation in bilateral cooperation between Pakistan and Saudi Arabia, anchored by an increase in signed agreements and a demonstrated commitment to operationalize several projects. The strategic partnerships not only aim to bolster Pakistan’s economy but also reinforce the longstanding relationship between the two countries, characterized by mutual support and collaboration across various sectors.

Original Source: www.dawn.com