Pakistan sends team to KSA: Economic roadmap to be sealed in 2 months

ISLAMABAD: The government has dispatched a special delegation to Saudi Arabia to discuss the proposed economic roadmap to be finalized within two months, well-informed sources told Business Recorder on Thursday.

The official delegation is comprised of Minister for Commerce, Jam Kamal Khan, Minister for National Food Security and Research, Rana Tanveer Hussain, and officials of the Special Investment Facilitation Council (SIFC), the sources added.

“Both countries will formulate a framework to proceed instead of jumping into different matters without preparation,” the sources added. The Commerce Ministry is working on an export plan with Saudi Arabia.

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Prime Minister Shehbaz Sharif, who has signed a historic defence pact with Saudi Arabia, has participated in the preparatory meetings virtually from the United States.

Both countries, sources said, have issues with the Bilateral Investment Treaty (BIT) template as both Riyadh and Doha want a new BIT template, paving the way for billions of dollars’ investment.

A huge investment from both countries is at a halt due to differences on the template of BIT, as both countries have proposed changes in it to include ‘exceptional’ incentives and protection of their investment, the sources added. “The Federal Cabinet in 2021 approved a Model Bilateral Investment Treaty (BIT) template,” he added.

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.

The sources revealed that six Saudi companies have indicated interest in the 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), which have been pending fora long time due to differences on investment protection issues, were discussed in the preparatory meetings.

Saudi Arabia has reportedly conveyed its serious annoyance to the government over the issues being faced by M/s Al-Jomaih in K-Electric, sources told Business Recorder. Sharing the details, the Special Investment Facilitation Council (SIFC) has informed the concerned authorities that the ongoing delays have deeply disappointed Saudi officials. Prime Minister Sharif had assured resolution within a month during a meeting in October 2024—an assurance still unfulfilled.

In light of these concerns, Pakistan’s Ambassador in Riyadh met with Saudi Assistant Minister of Investment Ibrahim Al-Mubarak on June 24, 2025. The meeting followed a virtual dialogue held on June 16, 2025, aimed at addressing Al-Jomaih’s grievances.

Islamabad has also been informed that Al-Mubarak stressed that further delays are damaging Pakistan’s investment credibility and could impact future Saudi commitments. He warned that unresolved issues could increase Pakistan’s investment risk profile, elevate insurance costs, and reduce projected returns. He added that Al-Jomaih holds significant influence in the Saudi investment community, and any negative experience could deter others from entering the Pakistani market.

He also mentioned that 34 B2B Memoranda of Understanding (MoUs) were signed in October 2024 between Saudi and Pakistani companies—several of which are now under reconsideration due to the ongoing dispute.

Copyright Business Recorder, 2025