ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal Friday emphasized Pakistan’s commitment to increasing its trade volume with Saudi Arabia.
During a meeting with Saudi Investment Minister Khalid Bin Abdulaziz Al Faleh, the minister highlighted that the trade between the two countries stood at $4.6 billion in 2022.
He said the relationship between the two countries was unique and always withstood the tests of time. However, he stressed that the challenge now was to align the relationship with modern realities by enhancing trade. “Our political relationship will strengthen with robust economic cooperation,” the minister asserted.
Reflecting on the beginning of Chinese cooperation in the form of CPEC projects, he recalled, “In 2013, I was entrusted with the responsibility of launching a game-changing project with China. It started with a piece of paper, and within 3-4 years, Pakistan secured $25 billion in investments under CPEC.”
Quoting the success of CPEC, the minister added that by 2017, Pakistan had reached a point where every American and European businessman was keen on joining CPEC projects.
“Unfortunately, due to the poor policies of the then-new government, our policies were discontinued, weakening the economy,” he remarked.
When the current government took office again, the challenge was to stabilize the economy for long-term growth. To achieve this, the government created the 5Es framework, which, according to the minister, was developed after consulting 1,000 opinion leaders and sector experts.
Discussing Pakistan’s future trajectory, the minister said the country’s most pressing challenge over the next 5-7 years would be to increase exports.
“Our weakness is that, over the past 77 years, we have failed to adopt an export-led growth strategy.” He further noted that a significant challenge Pakistan faces was the capacity of low-skilled labor working in Saudi Arabia.
“If the labour class returns to Pakistan, it will result in a considerable decrease in FDI,” he added. The minister suggested training Pakistan’s workforce and upgrading their technical capabilities to retain them within the Saudi economy.
Both sides discussed areas in which bilateral trade could be increased. The minister pointed out that both countries could export meat to third-world countries, as Pakistan’s agricultural products are on par with those from developed nations.
Highlighting Pakistan’s position as the third-largest milk producer in the world, the minister noted that Pakistan’s livestock provides an average yield of 1,800 liters, whereas the global standard is 6,000-8,000 liters. He stated that increasing agricultural productivity is a key focus for the government. “Our agricultural products can compete with those of New Zealand and Denmark if we improve our standards,” he said.
Talking about Saudi Arabia’s vast natural resources, the Planning Minister praised the Kingdom for effectively transforming its deserts into water-rich regions.
The minister also pointed out that a planet with 70% water should not face water scarcity. He referred to the possibility of desalination through both power generation and chemical methods. “In 2013, solar power cost 12 cents per unit; today, it is much cheaper,” he noted. The minister suggested that Saudi Arabia lead a project focused on desalination technology, with research facilitated by China. Both sides expressed optimism about the immense potential offered by the Pakistan-Saudi-China partnership.