Pakistan and Saudi Arabia signed 27 memorandums of understanding (MoUs) worth $2.2 billion in various sectors on Thursday.

Last night, a high-powered Saudi delegation led by its Minister for Investment Sheikh Khalid Bin Abdul Aziz Al Faleh arrived in Islamabad on a three-day official visit.

Prime Minister Shehbaz Sharif, Al Faleh and Chief of Army Staff (COAS) General Asim Munir witnessed the exchange of the signed copies of the MoUs in the sectors of industry, agriculture, information technology (IT), food, education, mining and minerals, health, petroleum, energy and other areas of mutual cooperation.

Addressing the occasion, the prime minister said the visit of the Saudi business delegation was a “true manifestation of great sincerity and affection” for the people of Pakistan from Saudi Crown Prince Mohammed bin Salman.

He hoped that today’s ceremony would lead to many more such events in times to come.

The premier expressed the government’s resolve to implement the MoUs and to transform them into future agreements through “hard work and untiring efforts”.

“Our Saudi brothers led by Khalid Bin Abdul Aziz Al Falih have done a remarkable job of promoting the Saudi economy and with his presence here, we will have his full cooperation to promote bilateral investments and business opportunities,” PM Shehbaz remarked.

The prime minister hoped that there would be many more such ceremonies in the future in both countries.

He assured the Saudi delegation that the MoUs signed would be fully materialised and there would be “no delay or red tape-ism” in the implementation process.

The prime minister said that Pakistan had secured an International Monetary Fund (IMF) programme, adding that he hoped it would be the last one. He thanked the Saudi leadership for its support in achieving the programme, saying that it could not have materialised without the kingdom’s support.

“Finally this programme is through, but we hope that this will be the last programme as we have already, through wonderful teamwork, managed to improve our economic indicators, inflation came down from 32 per cent to 6.9pc this month, our policy rate has come down from 23pc to 17.5pc, exports are increasing, foreign remittances are also increasing,” he said.

Additionally, he said the government was moving towards deep-rooted reforms in the country’s economy through very stringent measures and there was no compromise on these decisions.

The prime minister also conveyed his warm regards to King Salman bin Abdulaziz and the Saudi crown prince, acknowledging their leadership and support in enhancing bilateral ties.

‘No limits’ to Pak-Saudi economic cooperation: investment minister

Earlier, Saudi Minister for Investment Sheikh Khalid Bin Abdul Aziz Al Faleh on Thursday hailed Pakistan-Saudi Arabia ties, saying there were “no limits” to the possibilities of economic cooperation between the two countries.

Addressing the Pakistan Saudi Arabia Business Forum in Islamabad, Al Faleh said: “I think there are essentially no limits to what Saudi Arabia and Pakistan can do in the economic sphere, just like there are no limits to our friendship, to our bonds, to our historic relations.”

He confirmed that the two countries were presiding over 27 “organic agreements” and MoUs worth around $2bn, which would be signed throughout the day.

“First and foremost, we want to support Pakistan in continuing its economic stabilisation. Without Pakistan reaching its economic stability, it’s very difficult to do things together,” the minister said, praising Pakistan’s efforts in the last two years as “quite impressive”.

Referring to his meeting earlier today with COAS Munir, Al Faleh said the former “spoke from the heart as well as from the mind, as well as expressing numbers that are very, very compelling with the value proposition to the Saudi private sector for partnering with Pakistan”.

The Saudi minister said that the army chief had expressed his commitment that all matters of “red tape would be replaced with a red carpet treatment”, adding that this was through the “special one-stop shop” under the Special Investment Facilitation Council (SIFC).

Minister Faleh also expressed his satisfaction regarding trade between the two countries, noting that it had increased by 80pc — from $3bn in 2019 to $5.4bn.

Recalling an investment package agreed upon in April during PM Shehbaz’s visit to Saudi Arabia, the minister said his country was “committed to and extremely encouraged” by the Saudi crown prince’s announcement “committing the front end of Saudi investment to Pakistan which is $5bn”.

“I think these numbers, in my opinion, are only the tip of the iceberg,” Al Faleh emphasised.

He noted Pakistan’s unique strategic location: “You also need geographic reach and we see that Pakistan is uniquely positioned geographically, with your location extending from the Arabian Sea all the way to the heart of Asia.”

In his address, Finance Minister Muhammad Aurangzeb expressed optimism about Pakistan’s prospects, stating the country was at a good place on the economic front and was open to business.

“Over the last 12 to 14 months, we’ve made tangible progress in terms of macroeconomic stability,” Aurangzeb highlighted.

He went on to highlight progress in macro indices — noting that the country was in a primary surplus on the fiscal side, the current account deficit was less than $1bn, and the currency was stable.

“Ladies and gentlemen, it is a real pleasure and privilege to say that we have consolidated those gains as we went through this fiscal year in the first quarter,” he stated, adding that was also on the back of very strong remittances.

“Indeed the Kingdom of Saudi Arabia plays a very important and critical role in terms of that corridor,” the finance minister stressed, appreciating the Gulf nation for its support in the economic “turnaround journey over the past 14 to 15 months”.

Deputy Prime Minister and Foreign Minister Ishaq Dar noted that Pakistan’s new economic programme, backed by the International Monetary Fund, represented a “shift from past policies by moving away from easy stimulus”, a Foreign Office statement said.

“It focuses on reforms to boost productivity, and competitiveness, and create opportunities for private investment. The government is reforming state-owned enterprises and improving public services,” Dar noted.

He highlighted that the Saudi delegation’s visit came “at a pivotal time as Pakistan embarks on a journey of economic recovery and growth, supported by key reforms aimed at fostering private investment and enhancing public services”.

The deputy PM underscored Pakistan’s potential in sectors such as mining, information technology, agriculture, and renewable energy, inviting Saudi investors to participate in these lucrative opportunities.

Saudi Arabia recognises Pakistan’s potential: minister tells Zardari

Meanwhile, Pakistan and Saudi Arabia also reaffirmed their pledge to boost cooperation as the Gulf country’s investment minister and his delegation met President Asif Ali Zardari.

In their meeting at the President’s House today, President Zardari and the visiting Saudi delegation led by Al Faleh underlined the need to work together to build a prosperous and peaceful future for the region as well as for Muslim countries.

According to a President House press release, Minister Al Faleh said that Saudi Arabia recognised the strategic geographical significance of Pakistan and its potential for natural resources and renewable energy.

The minister said his country had planned to invest in the infrastructure and mining sectors of Pakistan, for which his delegation would sign 25 agreements in different sectors.

He expressed the hope that the agreements would mark a new era of economic cooperation between the two countries. Both sides also decided to increase collaboration in the areas of agriculture and information technology.

Zardari highlighted the longstanding and time-tested relationship between Pakistan and Saudi Arabia, his office’s statement said.

The president expressed Pakistan’s desire to elevate the bilateral ties into a long-term strategic and economic partnership, underscoring that such collaboration would bring the two brotherly nations further closer.

President Zardari reaffirmed Pakistan’s deep respect for the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud, and reiterated the country’s unwavering commitment to stand in solidarity with the Gulf nation.

He also praised the visionary leadership of Saudi Crown Prince and Prime Minister Mohammed bin Salman Al Saud.

The president also highly commended the friendly country’s remarkable progress under Vision 2030 and expressed gratitude for the Kingdom’s continued support to Pakistan during challenging times.

Interior Minister Mohsin Naqvi, Petroleum Minister Musadik Malik, Commerce Minister Jam Kamal Khan, Privatisation Minister Abdul Aleem Khan, Religious Affairs Minister Chaudhry Salik Hussain, Senator Saleem Mandviwalla, and Saudi Ambassador in Islamabad Nawaf Saeed Al Malki were also present during the meeting.

COAS Munir appreciates Saudi Arabia’s ‘unflinching support’

Separately, the Saudi investment minister, who was “accompanied by a high-level government cum business delegation”, also met with COAS Munir in Rawalpindi, the Inter-Services Public Relations (ISPR) said.

According to the military’s media affairs wing, their meeting “focused on matters of mutual interest, particularly initiatives to strengthen evergrowing brotherly bilateral cooperation in a variety of sectors”.

The Saudi investment minister was “accompanied by a high-level government cum business delegation” during his meeting with the army chief in Rawalpindi, the ISPR press release said.

“The COAS expressed his profound appreciation and gratitude for unflinching support for Pakistan from His Majesty King Salman bin Abdulaziz Al Saud and His Royal Highness the Crown Prince Muhammad bin Salman,” it noted.

The ISPR highlighted that the “manifestation of one of the largest business delegation’s visits to Pakistan reaffirms the enduring and fraternal ties” between the two friendly nations.

Gen Munir underscored the “deep respect and affection that the people of Pakistan” hold for Saudi Arabia.

Assuring the delegation of Pakistan’s “full support and commitment”, the army chief conveyed his “optimism for the promising outcomes that would mutually benefit both nations”.