ISLAMABAD:
Pakistan is seeking to deepen trade and investment ties with Saudi Arabia while pressing for stronger global coordination to manage rising sovereign debt risks, as Finance Minister Senator Muhammad Aurangzeb highlighted both priorities during engagements at the AlUla Conference for Emerging Market Economies 2026.
Speaking to Arab News on the sidelines of the conference, Aurangzeb described Saudi Arabia as a longstanding partner and said bilateral relations had remained resilient despite global geopolitical tensions, adding that Pakistan now wants to shift the focus of the relationship from aid and support towards trade and investment.
He said Saudi cooperation has facilitated investment across several sectors, including minerals and mining, information technology, agriculture and tourism, and pointed to an active pipeline of Saudi private-sector interest. He cited Wafi’s entry into Pakistan’s downstream oil and gas sector as an example of investments already materialising. Aurangzeb said private-sector activity is driving growth in these areas, while government-to-government engagement remains largely focused on infrastructure development. He acknowledged that investors have long raised concerns over bureaucracy and delays, but said Pakistan has made progress over the past two years through structural reforms, fiscal discipline and efforts to improve the business environment. He said the government has focused on what he described as “basic hygiene”, including stabilising the fiscal and broader economic situation, to create conditions for sustainable growth. Highlighting mining and refining as key areas of engagement, the finance minister referred to discussions around the Reko Diq project, while stressing that talks with Saudi investors extend beyond individual ventures and cover multiple sectors.
He also pointed to expanding cooperation in the IT sector, particularly artificial intelligence, noting that several Pakistani technology firms are already in discussions with Saudi counterparts or have established offices in the Kingdom.
Referring to recent talks with Saudi Minister of Economy and Planning Faisal Alibrahim, Aurangzeb said Pakistan’s large freelance workforce presents opportunities for deeper collaboration if skills development keeps pace with demand. He said Pakistan has one of the world’s largest freelancer populations and needs to upgrade skills to meet emerging requirements.
The finance minister also cited opportunities to benefit from Saudi Arabia’s experience in the energy sector and noted continued cooperation in defence production. Looking ahead, he said the prime minister has made it clear that Pakistan wants to move the relationship towards trade and investment rather than reliance on aid. Separately, according to a Ministry of Finance statement, Aurangzeb participated in a high-level roundtable on “Addressing Sovereign Debt Vulnerabilities” at the conference, jointly organised by the Government of Saudi Arabia and the International Monetary Fund.
In his intervention, he said global public debt remains at historic highs, placing sustained pressure on emerging and developing economies through elevated debt servicing costs, tighter financing conditions and constrained fiscal space. He said the central policy challenge is not only managing debt stocks but preventing liquidity pressures from turning into solvency crises, while protecting growth-enhancing and social spending. Aurangzeb cited remarks by Saudi Finance Minister Mohammed AlJadaan that macroeconomic stability is not an enemy of growth but a foundation for durable expansion, saying Pakistan’s recent experience reinforces this view.
He said Pakistan has made initial progress through disciplined macroeconomic policies, institutional reforms and proactive debt management, while acknowledging that the reform journey remains ongoing. WITH ADDITIONAL INPUT FROM APP
