A delegation of 32 Saudi companies will arrive in Pakistan today, with six companies expressing interest in the energy sector. According to media reports a high-level delegation from the Saudi private sector, led by Minister of Investment Khalid Al-Falih, will visit Pakistan from October 9 to 11, 2024.
The sources revealed that six Saudi companies have shown interest in the energy sector, and a Memorandum of Understanding (MoU) between the two countries is expected to be signed. Discussions will also be held on longstanding issues, including the Bilateral Investment Treaty (BIT), which has been delayed due to disagreements on investment protection.
GCC countries, including Saudi Arabia, are seeking preferential treatment in exchange for investments in Pakistan at the business-to-business level. The Pakistani government has already signaled its agreement to amend the BIT as per GCC countries’ proposals. Pakistan has estimated investment from Saudi Arabia in various sectors to be around $15-20 billion, which includes the acquisition or purchase of shares in public sector entities.
Saudi Arabia has also expressed interest in the hotel industry, renewable energy projects (especially solar projects in southern Punjab), the Reko Diq mine, and a petrochemical refinery. In May 2024, the federal government offered two plots in Islamabad for hotel projects to Saudi Arabia.
The Petroleum Division will discuss the establishment of a petrochemical refinery as a joint venture with China’s Sinopec, although past efforts in this regard have not been successful.
Prime Minister has tasked the Ministry of Commerce with organizing key arrangements for the delegation on October 10, 2024, including (1) a sectoral breakout session to be organized by the Ministry of Energy (Power Division) with relevant regulatory bodies, and (2) business-to-business meetings between Saudi companies and Pakistani businesses in the energy sector.
The Prime Minister’s Office has also requested updated information on K-Electric, as representatives from Saudi company Aljomaih will be part of the delegation. Saudi Arabia had previously shown interest in a solar PV power project in southern Punjab, but this is unlikely to materialize due to excess energy production and large-scale solarization in the country.
Pakistan will also request investment from the Saudi Minister of Investment for the Diamer-Bhasha Hydropower Project, which requires an $8 billion investment, though no agreement has been reached yet.
