ISLAMABAD: Saudi Arabia’s green-lighting of a new residency scheme for expatriates is a game-changer for 2.7 million Pakistanis living in the Kingdom, business officials and experts said, and might finally give expatriates who can pay a required fee the right to live, work and own business and property in the Kingdom.
The new residency scheme, officially known as a “Privileged Iqama” and commonly referred to as the Saudi “green card,” was first mentioned by Saudi Crown Prince Mohammed bin Salman nearly three years ago. Those eligible will be able to choose between an annual renewable option or permanent residency, with indefinite leave to remain in exchange for a higher, one-off fee. Saudi government officials have told Arab News that the scheme now awaits cabinet approval. “This is a very positive and long-awaited step,” Sehr Kamran, President of the Center for Pakistan and Gulf Studies, told Arab News. “It will give confidence to the expatriate community, especially the investors, since many people had been losing their businesses to Kafeels (Saudi sponsors).”
Once approved, this new system will end the need for expatriates to have a local sponsor, or “kafeel.” For those who already bend the rules by constantly renewing limited visitor visas, there will no longer be “visa runs” every few months. It will also eliminate long queues at embassies.
Without a Kafeel, a foreigner cannot do business in Saudi Arabia, and a local sponsor has controlling share over businesses, often leading to disputes.
“The biggest benefit [of the new scheme] is that Pakistanis who have been living there are aware of their language, and they can invest in small and medium size businesses and employ other Pakistanis without relying on local partners,” Rizwan-ul-Haq, former Ambassador to Saudi Arabia told Arab News.
“If mid-to-large scale businesses are assured of legal rights and a conducive environment, they would definitely move to Saudi Arabia. The educational and hospitality sector can boom,” he added.
Pakistan’s bilateral trade with Saudi Arabia stood at $1.871 billion in 2017-18 with exports amounting to $170 million and imports at $1.7 billion. Since 1971, Pakistanis have contributed toward building the Kingdom’s infrastructure. They remit nearly $6 billion from Saudi Arabia every year.
In order to be eligible for the new green card scheme, expatriates must meet several criteria including having a valid passport, clean criminal record, financial solvency, and authentic credit and health reports.
Farhan Ahmed, the CEO of an Islamabad-based travel and tourism company, said Riyadh’s decision was encouraging for Pakistan’s business community.
“This is a very positive and encouraging move. It gives hope to the business community to go and invest there without concerns over the protection of their investment,” Ahmed said, adding that he would definitely consider availing the opportunity “after proper consideration.”
Over 2.7 million Pakistanis living in Saudi Arabia to benefit from new green card
Over 2.7 million Pakistanis living in Saudi Arabia to benefit from new green card
- “Privileged Iqama” scheme first mentioned by Saudi Crown Prince Salman nearly three years ago
- Once approved, new system will end the need for expatriates to have a local sponsor, or “kafeel”
New PIA owner plans more GCC flights, lower airfares
- New management will focus on religious tourism to Makkah, Madinah and other sites to expand global reach
- Owner Arif Habib says airfares will be rationalized to make PIA flights affordable for low-income Pakistanis
KARACHI: Pakistan’s recently privatized national carrier, the Pakistan International Airlines (PIA), plans to increase its flights to the Gulf Cooperation Council (GCC) region as part of its post-privatization business strategy to achieve 7.5% annual revenue growth, its new owner said this week.
A Pakistani consortium, led by Arif Habib Group, clinched a 75% stake in PIA for Rs135 billion ($482 million) on Dec. 23 after a competitive bidding process, in a deal that valued the airline at Rs180 billion ($643 million).
The sale marked Pakistan’s most ambitious effort in decades to reform the debt-ridden airline that had accumulated over Rs784 billion ($2.8 billion) in losses. The government said it aimed to end decades of state-funded bailouts and support the airline’s revival.
In an exclusive interview with Arab News, Arif Habib, chairman of Arif Habib Group, shared that he aims to attract around 70 million Pakistanis, who travel annually via different airlines, by making airfares more affordable.
“That [GCC region] is our biggest market... We would definitely try to increase the frequency of flights, increase the number of planes there, and try to capture more market share in that area,” Habib told Arab News on Monday.
“So, there we see a lot of opportunity.”
The new management of PIA, which currently caters to 4 million passengers annually, aims to target religious tourism, which Habib called a “captive market” in Pakistan and the Middle East.
According to PIA spokesperson Abdullah Hafeez Khan, the airline runs around 20 flights daily to the Middle East.
Habib plans to invest around Rs112 billion ($400 million) in PIA to turn the airline around, implementing short- and long-term improvements ranging from upgrading seats to tripling the 19-aircraft fleet, and engaging a foreign airline as a technical partner through strategic divestment over the next seven to eight years.
The group also intends to reduce PIA fares to make air travel more affordable for passengers from Pakistan’s low-income groups.
“Yes, we have been advised that in order to increase our market share, we will have to rationalize the airfares,” Habib said. “That is in the plan, and we will unfold it as it comes.”
The new owners have engaged a global advisory firm, Seabury Aviation Partners, to identify viable markets for the newly privatized airline and expand its presence both locally and internationally.
Habib aims for up to 7.5% annual growth in PIA’s operational revenues to make it profitable and the new management is targeting European and North American markets, particularly routes to and from the United Kingdom, the United States and Canada, for this purpose.
“The UK is the most lucrative market where I think there is a lot of demand,” he said, adding they would also be seeking more flight destinations. “Even for USA there is demand there.”
Habib, however, said the airline would take time to deliver “reasonable” returns to its investors, including AKD Group Holdings, Fatima Fertilizer Company, City Schools, Lake City Holdings and Fauji Fertilizer Company, a publicly listed firm owned by Pakistan’s military.
“In initial period of one to two years, we may see some losses but into medium term, I think, that would be turned around,” he concluded.
PIA posted a pre-tax profit of Rs11.5 billion ($41 million) for the January–June 2025 period, its first such profit for this timeframe in nearly two decades, according to a Reuters report in September. The airline recorded losses during the same period in 2024.
Once considered one of Asia’s leading carriers, PIA struggled with chronic mismanagement, political interference, overstaffing, mounting debt, and operational issues that led to a 2020 ban on flights to the European Union, the UK, and the US following a pilot licensing scandal. The EU and UK have since lifted their bans, giving the airline renewed momentum, while the US ban remains in place.
On Tuesday, PIA announced that the airline will be expanding its UK operations and will operate four weekly flights from Islamabad to London starting Mar. 29.
“The flights are being resumed after a long gap of six years,” PIA spokesman Khan said in a statement. “PIA is already operating three weekly flights to Manchester.”
