KEY POINTS
- Finance minister says Saudi Arabia’s $10bn investment for Pakistan remains unchanged
- New Pak-Saudi framework pivots from crisis support to private-sector, B2B investments
- Reko Diq financial close expected within weeks as IFC anchors $3.5bn debt package
- Pakistan targets minerals, IT, manufacturing and agriculture under long-term investment shift
ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb has said that the Kingdom of Saudi Arabia’s (KSA) previously signalled $10 billion investment for Pakistan remains fully intact.
According to the Finance Minister, both countries are transitioning from emergency financial support toward a new model of private-sector-led, commercially driven economic engagement.
In an interview with Arab News, the Finance Minister said Islamabad is now assembling “bankable” projects under the Saudi–Pakistan Economic Cooperation Framework, a structure unveiled last month that reflects Crown Prince and Prime Minister Mohammed bin Salman’s push for equity-based, commercially viable opportunities instead of central bank deposits or deferred oil facilities.
Pakistan’s early macroeconomic stabilisation, including easing inflation, a steadier rupee, higher reserves and improved ratings outlook from major agencies, had bolstered investor confidence during a period in which the government is seeking to convert geopolitical goodwill into long-term investment flows.
The new Saudi approach aligned with Pakistan’s own priorities, the Minister said. The government needs trade and investment to replace recurrent crisis-era financing arrangements, creating a predictable environment for private capital.
From the Saudi perspective, the Minister said, readiness was clear, but Islamabad now needed to present credible, fully prepared ventures.
Pakistan’s objective was to move toward sustainability through deeper commercial ties, with the private sector taking the lead as governments shift into facilitation roles.
Both sides have identified minerals, mining, IT, agriculture, food, tourism and manufacturing as priority areas. Manufacturing potential has grown further as Saudi Arabia prepares for the 2034 FIFA World Cup, generating demand for sports-related industrial capacity.
Aurangzeb pointed to Forward Sports Sialkot, Adidas’s largest global football supplier, as an example of the new model. The company engaged Saudi officials on a production arrangement that would keep high-precision manufacturing in Pakistan and shift the finishing, packaging and regional distribution to the Kingdom as part of its localisation strategy. He said such partnerships marked the start of a wider evolution in bilateral economic ties.
On Reko Diq, Aurangzeb said the long-awaited financial close for Pakistan’s largest copper-and-gold mining venture was “around the corner”. The International Finance Corporation (IFC) is leading the debt consortium, a sign of strong due diligence that global lenders rely on for complex resource-sector projects. The US Export-Import Bank’s participation, temporarily delayed by the recent US government shutdown, is also expected to resume soon, clearing the final approvals.
According to the Minister, the financing package is essentially assembled, with roughly $3.5 billion in project debt structured and coordinated through the IFC-led group. He underscored Reko Diq’s strategic importance for Pakistan’s export base. With national exports stuck around $30 billion for years, the mine’s first year of production alone would have an estimated export potential of $2.8 billion, almost a tenth of current annual exports.
Beyond Reko Diq, Aurangzeb said Pakistan is advancing discussions with the United States and other partners on critical minerals, an area of heightened global competition as supply chains diversify away from dominant producers.
He confirmed strong international interest but said negotiations are continuing, adding that Pakistan sees substantial potential in copper, lithium, cobalt and related minerals.
Aurangzeb said Pakistan’s broader goal is to channel improving economic fundamentals and favourable diplomacy into long-term, private-sector-led investment. Saudi Arabia, he noted, is positioned to become one of the most consequential partners in this transition.
