KARACHI: Saudi Minister for Investment Sheikh Khalid Bin Abdul Aziz Al Falih said on Thursday that a Saudi firm was set to buy a stake in Barrick Gold’s Reko Diq gold and copper mine in the coming weeks.

“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,” Mr Al Faleh, who arrived in Islamabad on Wed­nesday on a three-day official visit, said while speaking at the Pakistan-Saudi Arabia Business Forum in the federal capital.

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

“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”.

“I am glad we have a newly formed venture called Manara between PIF and Ma’aden — our national champion in mining — and they are eager to start a number of initiatives, but the first one we hope to conclude in the next few weeks will be for them to enter into the Reko Diq project with state-owned enterprises of Pakistan,” he told the gathering.

“And Barrick Gold was working in Saudi Arabia and sees our partnership as an additive to the project,” he said, adding that he saw the move as “sort of a pilot project that we hope will be multiplied many times over”.

Manara Minerals Investment Company, backed by the Saudi sovereign wealth fund, plans to invest at least $1bn in the Reko Diq project, controlled by the Canadian mining firm.

Mr Al Faleh also expressed his satisfaction regarding trade between the two countries, noting that it had increased by 80 per cent, 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,” Mr Al Faleh emphasised.

‘Tangible progress’

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,” Mr Aurangzeb highlighted.

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.

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

Published in Dawn, October 11th, 2024