ISLAMABAD: Pakistan and Saudi Arabia reaffirmed their commitment to further deepen and expand mutually beneficial economic relations, emphasising enhanced cooperation across trade, investment, energy, and key development sectors.
According to a statement issued by the Finance Ministry on Monday, the commitment was made during a meeting between Pakistan’s Finance Minister Muhammad Aurangzeb and his Saudi counterpart Mohammed Aljadaan held on the sidelines of the World Economic Forum Annual Meeting 2026 in Davos.
“The bilateral engagement provided an opportunity for both leaders to exchange views on Pakistan’s economic progress and explore avenues for further strengthening the long-standing economic partnership between Pakistan and the Kingdom of Saudi Arabia,” it said.
During the meeting, Minister Aljadaan shared his assessment of Pakistan’s recent economic progress.
Muhammad Aurangzeb expressed his appreciation to the Kingdom of Saudi Arabia and its leadership for their continued and steadfast support, highlighting the deep-rooted and time-tested relationship between the two brotherly nations.
He briefed his Saudi counterpart on key macroeconomic indicators, stating that Pakistan’s economy is firmly on a path of stabilisation and growth.
He noted that foreign exchange reserves have strengthened, providing import cover of approximately three months, which reflects improved macroeconomic resilience.
Highlighting growing investor confidence, the finance minister said that sixteen initial public offerings (IPOs) are currently in the pipeline, following the successful completion of nine IPOs last year.
He also pointed to the participation of more than 120,000 new investors in the capital market, underscoring renewed confidence in Pakistan’s economic outlook.
The Finance Minister noted that interest rates had begun to trend downward, while reaffirming the independence of the State Bank of Pakistan in determining monetary policy.
He added that economic growth had reached 3.1 percent last year and had further accelerated to 3.7 percent in the first quarter of the current fiscal year.
He underscored that the government remained focused on maintaining a sustainable current account balance alongside steady and inclusive GDP growth, in line with its broader economic vision.
He further underscored the critical role of remittances in supporting economic stability, noting that inflows are projected to rise from $ 38 billion last year to over $ 41 billion this year.
The finance minister also cited the continued growth of IT services as a key driver of economic activity, contributing positively to the current account.
In this context, Senator Muhammad Aurangzeb expressed appreciation for the valuable support extended by the Kingdom of Saudi Arabia.
He also highlighted the government’s ongoing efforts to attract greater foreign direct investment, particularly in priority sectors such as minerals and mining, agriculture, and other productive areas with strong export potential and broad-based socioeconomic impact.
Briefing his counterpart on the government’s privatisation agenda, he said that several important transactions had recently been concluded, including investment from the United Arab Emirates in a digital venture and progress related to Pakistan International Airlines.
He added that the government intends to maintain this momentum through the phased privatisation of selected state-owned enterprises, including certain power distribution companies and major airports in Islamabad, Lahore, and Karachi.
Minister Aljadaan shared Saudi Arabia’s own experience with privatisation, highlighting how a consistent and well-managed approach had delivered long-term benefits for the Kingdom and its people.
He cited the transformation of Saudi airports into strong revenue-generating assets as an example of successful economic reform.
Saudi Arabia remains Pakistan’s largest source of remittances and hosts more than 2.5 million Pakistani expatriates, highlighting the depth of economic and people-to-people ties between the two countries.
The two sides have also agreed to launch an Economic Cooperation Framework to strengthen trade and investment ties, following Prime Minister Shehbaz Sharif’s meeting with Saudi Crown Prince Mohammed bin Salman on the sidelines of the Future Investment Initiative summit in Riyadh in October last year.
