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”
Pakistan PM orders accelerated privatization of power sector to tackle losses
- Tenders to be issued for privatization of three major electricity distribution firms, PMO says
- Sharif says Pakistan to develop battery energy storage through public-private partnerships
ISLAMABAD: Pakistan’s prime minister on Monday directed the government to speed up privatization of state-owned power companies and improve electricity infrastructure nationwide, as authorities try to address deep-rooted losses and inefficiencies in the energy sector that have weighed on the economy and public finances.
Pakistan’s electricity system has long struggled with financial distress caused by a combination of factors including theft of power, inefficient collection of bills, high costs of generating electricity and a large burden of unpaid obligations known as “circular debt.” In the first quarter of the current financial year, government-owned distribution companies recorded losses of about Rs171 billion ($611 million) due to poor bill recovery and operational inefficiencies, official documents show. Circular debt in the broader power sector stood at around Rs1.66 trillion ($5.9 billion) in mid-2025, a sharp decline from past peaks but still a major fiscal drain.
Efforts to contain these losses have been a focus of Pakistan’s economic reform program with the International Monetary Fund, which has urged structural changes in the energy sector as part of financing conditions. Previous government initiatives have included signing a $4.5 billion financing facility with local banks to ease power sector debt and reducing retail electricity tariffs to support economic recovery.
“Electricity sector privatization and market-based competition is the sustainable solution to the country’s energy problems,” Prime Minister Shehbaz Sharif said at a meeting reviewing the roadmap for power sector reforms, according to a statement from the prime minister’s office.
The meeting reviewed progress on privatization and infrastructure projects. Officials said tenders for modernizing one of Pakistan’s oldest operational hubs, Rohri Railway Station, will be issued soon and that the Ghazi Barotha to Faisalabad transmission line, designed to improve long-distance transmission of electricity, is in the initial approval stages. While not all power-sector decisions were detailed publicly, the government emphasized expanding private sector participation and completing priority projects to strengthen the electricity grid.
In another key development, the prime minister endorsed plans to begin work on a battery energy storage system with participation from private investors to help manage fluctuations in supply and demand, particularly as renewable energy sources such as solar and wind take a growing role in generation. Officials said the concept clearance for the storage system has been approved and feasibility studies are underway.
Government briefing documents also outlined steps toward shifting some electricity plants from imported coal to locally mined Thar coal, where a railway line expansion is underway to support transport of fuel, potentially lowering costs and import dependence in the long term.
State authorities also pledged to address safety by converting unmanned railway crossings to staffed ones and to strengthen food safety inspections at stations, underscoring broader infrastructure and service improvements connected to energy and transport priorities.
