Finance Minister Muhammad Aurangzeb has said Saudi Arabia’s previously indicated $10 billion investment interest in Pakistan remains intact, with both countries now transitioning from crisis financing toward long-term, commercially driven economic engagement.
In an interview with Arab News, Aurangzeb said Pakistan is preparing a pipeline of bankable private-sector projects as part of a broader shift from state-to-state support to business-to-business investment under the Saudi–Pakistan Economic Cooperation Framework.
He added that while Riyadh had historically extended central bank deposits and deferred oil facilities, Crown Prince Mohammed bin Salman last year outlined a new focus on equity-based, commercially viable investments.
He said the shift aligns with Pakistan’s improving macroeconomic outlook. Inflation has eased from a peak of nearly 38 percent in May 2023, the rupee has stabilised, and foreign exchange reserves have strengthened following fiscal and monetary tightening. Ratings agencies Fitch and Moody’s have also revised Pakistan’s outlook upward after years of downgrades.
Aurangzeb noted that Pakistan is midway through a $7 billion IMF programme approved in September 2024, with the Fund’s second review complete and a board decision expected in early December. These developments, he said, signal that economic risks are moderating and help reinforce investor confidence.
He said Pakistan is attempting to convert improved geopolitical goodwill from Saudi Arabia, China, the United States and GCC partners into durable foreign direct investment, adding that the government wants the private sector to lead the next phase of engagement. “From Saudi Arabia’s perspective, they are ready, willing and able. Now the ball is in our court to come up with investable, bankable projects,” he said.
Aurangzeb said priority sectors identified for Saudi investment include minerals and mining, IT, agriculture, food and tourism. Manufacturing has also emerged as a potential collaboration area as Saudi Arabia prepares for the 2034 FIFA World Cup. He cited Forward Sports Sialkot’s discussions at the Future Investment Initiative summit in Riyadh on a model involving precision manufacturing in Pakistan and finishing and distribution in Saudi Arabia.
He said the centre of Pakistan’s investment discussions with foreign partners is the Reko Diq copper-and-gold project in Balochistan, where Saudi-backed Manara Minerals has expressed interest in acquiring a 15 percent stake. Aurangzeb said the long-awaited financial close is now “around the corner,” with the IFC leading a $3.5 billion debt consortium for the project. He added that the US Export-Import Bank’s participation is expected to resume soon after the end of the recent US government shutdown.
He said all major elements of the financing structure have been completed and lender approvals are the final step. The mine’s first year of operations is expected to generate $2.8 billion in export potential—nearly 10 percent of Pakistan’s current annual exports of around $30 billion.
Aurangzeb said the government’s objective is to sustain economic improvements and shift decisively toward private-sector-led investment flows, with Saudi Arabia positioned to play a key role.
