SMEDA working to reduce trade deficit with Saudi Arabia

LAHORE: The Small and Medium Enterprises Development Authority (SMEDA), under leadership of the Ministry of Industries and Production is working on a strategy to reduce trade deficit between Pakistan and Saudi Arabia through joint investment projects in the export oriented industrial sectors of Pakistan.

A meeting held at SMEDA head office under the chairmanship of Saif Anjum, Federal Secretary Industries and Production reviewed the industrial sectors having potential for producing value added products for Saudi Arabia as well as the sectors with the capacity to emerge as import substitutes.

Socrat Aman Rana, CEO SMEDA and a number of the senior officials of SMEDA were also present on this occasion. The concerned officials from other ministries attended the meeting on zoom.

Saif Anjum said that the government of Pakistan has planned to enhance country’s overall exports up to USD 120 billion by 2035, for which we will have to identify the more export oriented and import substitute sectors in the manufacturing industry with high value addition. He observed that currently improved bilateral relations with Kingdome of Saudi Arabia can play pivotal role in making a paradigm shift in enhancing exports and investment volume of Pakistan.

Speaking on this occasion Socrat Aman Rana, CEO SMEDA observed that to expand trade and investment with Saudi Arabia, initially we will have to give priority to the current potential sectors like leather foot ware, sports goods, surgical instruments, cutlery, textile and apparel. However, he suggested consulting the industry’s key stakeholders to further expand the potential sectors’ base.

A presentation shared in the meeting revealed, “Currently, Pakistan’s exports to Saudi Arabia stand at approximately USD 734 million and imports from KSA at USD 4.47 billion, resulting in a trade deficit of USD 3.37 billion”. To address this imbalance, a Five-Year Industrial Development and Trade Diversification Strategy is being advanced for industrial modernization and targeted up-gradation in coordination with other concerned divisions.

The strategy, under work, aims to double Pakistan’s exports to KSA and reduce the net bilateral trade deficit by 25% through strategic cooperation and joint ventures.

A program is also being proposed to strengthen value chains through partnerships with leading Saudi retail, healthcare and sporting goods firms under long-term purchase commitments.

The preliminary consultations with leading industry representatives, multiple joint venture opportunities between Pakistan and Saudi Arabia were identified across key sectors such as cutlery (Wazirabad), surgical instruments (Wazirabad), textiles (Faisalabad), sports goods (Sialkot) and leather footwear. These initiatives align with the shared vision of the leadership of both countries to deepen industrial cooperation, expand non-oil trade and empower SMEs as engines of sustainable economic growth.

Copyright Business Recorder, 2025