Finance Minister Muhammad Aurangzeb said on Wednesday that Saudi Arabia’s interest in a US$10 billion investment package in Pakistan remains intact.
In an interview with Arab News, he said that bilateral engagement has shifted from a financing-based approach to a business-to-business model, as the government prepares bankable private-sector projects for Saudi investors.
Aurangzeb said inflation in Pakistan has fallen sharply, while the rupee and foreign exchange reserves show stability. He added that Fitch and Moody’s have improved Pakistan’s rating outlook. "The second review of the International Monetary Fund’s US$7 billion programme has concluded, with a board decision expected in early December."
He identified mining, information technology, agriculture, food and tourism as priority sectors for Saudi investment. He said joint prospects in sports manufacturing in connection with preparations for the 2034 FIFA World Cup, and said the industrial cooperation model of Sialkot-based Forward Sports with Saudi Arabia is under consideration.
Aurangzeb said the Reko Diq project is close to financial close, with the International Finance Corporation arranging a US$3.5 billion loan consortium. He expressed hope for the early restoration of the participation of the US Exim Bank. The first output from Reko Diq has an export potential of US$2.8 billion.
He said Saudi company Manara Minerals has expressed strong interest in the purchase of a 15 per cent share in Reko Diq. He added that Pakistan has made progress with the United States on cooperation in critical minerals.
