Mehmood Ul Hassan Khan
Pakistan and the Kingdom of Saudi Arabia enjoy genealogical relations that are entrenched in common faith, traditions and commonality of views on all issues of mutual interest. Pakistan and Saudi Arabia have always stood by each other in testing times and the people of Pakistan deeply value relations with the Kingdom of Saudi Arabia.
Purposeful Engagements
During his two days visit, Saudi Foreign Minister, Saud Al Faisal met President Mamnoon Hussain, Prime Minister Nawaz Sharif and Adviser on Foreign Affairs and National Security, Sartaj Aziz to make better understanding towards emerging regional and international geo-political and geo-strategic issues.
Revival of Joint Economic Commission & Joint Business Council
Speaking at a media conference after completing his engagements, the visiting Saudi Foreign Minister said: “Saudi Arabia and Pakistan enjoy commonality of views and understanding on regional peace.” The two countries also agreed to convene a meeting of their Joint Economic Commission (JEC) to discuss the various proposals for cooperation in trade, economy, investment and energy. Saudi Arabia expressed particular interest in investments in the energy sector. The two countries decided to activate their Joint Business Council (JBC) for increasing involvement of the private sector.
Pakistan’s Expected Privatization Drive & Exploration of Shale Gas
The government also intends to disinvest its Public Sector Entities (PSEs), which can be another area of interest to Saudi businessmen. The government is also working on a new exploration policy to tap the huge natural resources in the country especially the “Shale Gas, the new revolution in the energy sector”. Pakistan expects Saudi businessmen to invest in the field of exploration that would be a win-win situation.
Saudi Arabia’s Investments in Gwadar
Saudi Arabia can also participate in the development of Gwadar by financing or investing in some of the areas related to Port infrastructure such as storage, warehousing etc. hotels, motels, travel and tourism, industrial sector, seafood processing and export, date processing and export, construction office spaces etc. in social sector and other. The investments in oil refinery would be vital for both the countries in the days to come.
Resumption of Saudi-Pak Economic Commission
Pakistan Finance Minister Ishaq Dar praised the resumption of the Saudi-Pak Economic Commission, which was not so active for several years. It is hoped that the revival of this Commission will provide a forum to both the countries to explore new areas of cooperation, boosting their economic strengths and potentials for mutual benefit and prosperity.
Pak-Saudi Arabia’s Bilateral Trade
According to official figures the bilateral trade between Pakistan and Saudi Arabia in 2012 stood at $4.7 billion out of which Pakistan’s exports to Saudi Arabia accounted for $456 million whereas imports from Saudi Arabia stood at $4.29 billion.
Pakistan’s exports to the Kingdom have more or less been stagnant during the last 10 years and have been hovering around $300 to 400 million. In 2012 Pakistan’s exports for the first time crossed the $450 million mark.
The balance of trade between the two countries has historically been in favor of Saudi Arabia, due to Pakistan’s dependence on imports of oil and petroleum products for its local needs, which accounts for approximately 75 percent of Pakistan’s total imports from Saudi Arabia. Meanwhile the Saudi authorities are already in the process of lifting the ban on poultry imports from Pakistan, which will allow the country to tap into the $400 million Saudi poultry import market.
Prospects of Saudi Arabia Investments & Pledge of Saudi Fund for Development
Prince Saud said the prospect of investing in Pakistan’s energy sector could be discussed during the next joint economic commission meeting. He pledged that the Saudi Fund for Development would continue to finance Pakistan’s development projects. Most recently, Saudi Fund for Development (SDF) has announced an additional fund of $57 million for 106-megawatts (MW) Golen Gol Hydropower Project being constructed in district Chitral of Khyber Pakhtunkhwa province. The Saudi Fund has earlier provided financial assistance of $40 million for civil works of Golen Gol Hydropower Project.
Moreover, the SDF has already completed 498 impressive schemes out of 585 for the community infrastructure restoration and rehabilitation in six tehsils of disturbed areas of Swat. According to Saudi mission in Islamabad, the schemes completed so far comprise of street pavement, link roads, drainage channels and bridges etc, and they have been handed over to communities concerned.
Saudi Concern about Afghanistan
Saud Al-Faisal said there was a need for joint efforts to eradicate the menace of terrorism. He said that international troops were being drawn from Afghanistan by the end of this year and efforts were required to stop the terrorists from regrouping and filling the gap which has been created due to the withdrawal of international forces. He said that Afghanistan was going through a critical phase and a cautious approach should be adopted to restore peace in the country especially after withdrawal of the US forces.
The Prince urged that its various main stakeholders and groups should work together and prevent foreign parties from exploiting its poor security situation. Sharif reaffirmed that Pakistan remained committed to facilitating an Afghan-led peace and reconciliation process, adding that a peaceful and stable Afghanistan was in his country’s interests.
Saudis Stand with the will of Syrian People
On Syria, Prince Saud said the irresponsible statements by some international parties would affect the success of the Geneva II conference. “I’m afraid these statements are aimed at diverting the conference from implementing the Geneva I resolutions.” The Saudi minister said Syria needs a new interim coalition government with wide-ranging powers that does not include Bashar Assad or key figures in his regime. Pakistan and Saudi Arabia agreed to deepen their defence cooperation and support each other’s position on regional issues, including Syria and Afghanistan.
Special privileges to Saudis
Pakistani Prime Minister Muhammad Nawaz Sharif offered special privileges to Saudis investing in Pakistan’s energy, infrastructure, agriculture, livestock and other key sectors.
Need of new strategic relationship
The prime minister met Prince Saud and discussed bilateral and regional issues. Pakistan and Saudi Arabia need to enhance bilateral trade by holding regular meetings between its commerce ministries, the premier said.
The prime minister said Pakistan and Saudi Arabia need to enhance bilateral trade to reflect the strong fraternal bonds that exist between them by holding regular meetings between the commerce ministers to explore ways of enhancing bilateral trade. About the energy situation in Pakistan, the prime minister said Pakistan would welcome investment by the kingdom in energy sector and also in other sectors like infrastructure, agriculture and livestock.
“There is a need to start a new strategic relationship between our two countries to further broaden and deepen the existing cordial relations,” Sharif said. “Pakistan supports all efforts aimed at strengthening unity among Islamic countries.” The premier thanked the Saudi government for helping Pakistani workers affected by Nitaqat regulations.
Concluding Remarks
Pakistan and the Kingdom of Saudi Arabia must have joint security shield, energy cooperation, and food security, joint strategy against terrorism and last but not the least extremism. Above all, both countries must initiate integrated efforts for bringing peace in the region, especially in Afghanistan.
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