32 top Saudi cos’ team due today

ISLAMABAD: A high-level delegation comprising 32 leading private sector companies from Saudi Arabia, headed by the Minister for Investment, Khalid al-Falih, is scheduled to visit Pakistan from 9-11 October 2024, sources in the Commerce Ministry told Business Recorder.

The sources revealed six KSA companies have indicated interest in energy sector, adding that a Memorandum of Understanding (MoU) is expected to be signed between the two countries.

Issues including the Bilateral Investment Treaty (BIT), pending since long due to differences on investment protection issues, will also some under discussion.

‘Investment talks’: high-level Saudi business delegation lands in Pakistan

The sources said GCC countries including Saudi Arabia want special treatment in return for investing in Pakistan at the B2B level. The government has already indicated its consent to amendment of BIT as per the proposals of GCC countries.

Pakistan is estimating investment of up to $15-20 billion from Saudi Arabia in different sectors/fields including purchase of public sector entities or share purchase.

Saudi Arabia has shown interest in investing in hotel industry, renewable energy projects especially solar projects in South Punjab, Reko Diq and petrochemical refinery. In May 2024, Federal Government had offered two plots to Saudi Arabia for hotels in key locations of Islamabad.

The Petroleum Division will discuss the establishment of petrochemical refinery as a joint venture with China’s Sinopec. However, such efforts in the past did not bear fruit.

Ministry of Commerce has been tasked by the Prime Minister to make the following important arrangements for the delegation on October10, 2024: (i) arrange a Sectoral Breakout Session, which will be conducted by Ministry of Energy (Power Division) along with relevant regulator entities/organizations; and (ii) arrange B2B meetings of the Saudi Companies with Pakistan business entities operating in the energy sector.

The sources said, Prime Minister Office (PMO) had sought update on the issues of K Electric (KE) as the representative of Saudi Company Al-Jomaih is also expected to be part of the official delegation.

Saudi Arabia had shown interest in investing in the establishment of solar PV power project in south Punjab, which is now unlikely to materialize due excessive generation and massive solarization the country.

Pakistan will also request Saudi Investment Minister to invest in Diamer Bhasha Hydropower Project which requires $ 8 billion investments but no agreement has been reached so far.

Copyright Business Recorder, 2024