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Businesses from Saudi and Pakistan signed 27 MoUs that will see investments in Pakistan worth a combined USD 2 bn in the country’s agriculture, energy, manufacturing, technology, healthcare, and oil sectors. The agreements were finalized during Investment Minister Khalid bin Abdulaziz Al Falih’s three-day visit to Islamabad with a delegation of over 130 business executives and industry leaders, according to Arab News. The signings also got ink in the Associated Press.
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What we know of the agreements:
- Agriculture: An investment of USD 70 mm in Pakistan’s agricultural sector, and the export of spices and vegetables from Pakistan to Saudi Arabia;
- Energy: Yanbu-based Engineering Dimension Holding partnered with Pakistan-based Welt Konnect to develop a 500 MW hybrid power project near Karachi. Also, Asyad Holding Group will acquire Shell’s operations in Pakistan;
- Manufacturing: Cooperating on setting up semiconductor chip manufacturing in Saudi Arabia, and development of transformer manufacturing facilities in both countries;
- Healthcare: All Care Medical Group signed two agreements with Pakistani firms to produce surgical instruments and pharmaceuticals, with plans to launch a factory in the Kingdom;
- Ed-tech: Classera initiated eTaleem, an e-learning initiative with Pakistan Telecommunication Co., aiming to benefit 60 mn students;
- Oil: Development of a white oil pipeline, and ongoing discussions for a USD 1.7 bn brownfield refinery upgrade with Pakistan State Oil, and exploration of a separate USD 7-10 bn greenfield refinery project with Pakistan Refinery Limited in Pakistan, according to Global Flow Control.
Less than expected: The total value of the MoUs is USD 2.8 bn short of the USD 5 bn investment package that Pakistan’s premier discussed with Prime Minister and Crown Prince Mohammed bin Salman when they met in Riyadh in April to support the cash-strapped country.
