ISLAMABAD: Pakistani economists on Saturday expressed skepticism over the government’s claim it would be able to accelerate economic growth to 3.6 percent in the next fiscal year from 2.4 percent in the outgoing financial year, warning that employment and poverty rates could increase further in the coming months.
Prime Minister Shehbaz Sharif’s administration is expected to present the annual budget on June 10, at a time when the country is facing an economic crisis with double-digit inflation and struggling to secure funding from the International Monetary Fund (IMF).
The government on Friday approved a 3.6 percent growth target for the 2024-25 budget, boosting the development allocation to Rs1.2 trillion ($4.3 billion) from Rs950 billion ($3.4 billion) in the outgoing fiscal year, which has now been slashed to Rs717 billion ($2.6 billion) due to fiscal constraints.
“Looking at the economic indicators including agricultural and large-scale manufacturing growth, it seems the government may hardly be able to achieve around three percent growth rate,” Sajid Amin, economist and deputy executive director at the Sustainable
Development Policy Institute (SDPI) in Islamabad, told Arab News.
“The governments usually budget a high growth target and then revise it down,” he said, referring to the outgoing fiscal year’s growth rate as the government had targeted 3.5 percent but achieved only 2.4 percent.
Amin said that around nine million youth were entering the labor market annually and Pakistan would require at least a five percent growth rate to create job opportunities for them.
“Even if the government achieves the growth target, the unemployment and poverty rate would unfortunately increase,” he said.
According to a recent Planning Commission report, the government expects inflation to moderate to 12 percent in the next fiscal year while admitting that growth prospects “hinge upon political stability, exchange rate, macroeconomic stabilization under IMF’s program and expected fall in global oil and commodity prices.”
Ali Khizar, an economist, said the country was faced with gross financing gaps and development would remain in check with real interest rates to stay positive.
“Pakistan’s current account is expected to stay close to zero until the foreign exchange reserves build,” he told Arab News, adding that commercial financing revenues would remain low and with all this Pakistan would not be able to achieve the targeted growth rate.
“Even 3.6 percent growth rate is not a good number to create job opportunities and bring people out of poverty,” he continued, adding that Pakistan would have to ensure tight fiscal and monetary policies with high interest rates to secure the IMF loan program.
These, he pointed out, would slow down the economy.
Saudi PIF executes 10 investment deals in MENA markets, says official
Updated 11 December 2025
ABDULLAH AL-BUSAILI AL-EQTISADIAH
RIYADH: Saudi Arabia’s Public Investment Fund has executed more than 10 investment deals across several markets in the Middle East and North Africa over the past two years, according to Muteb Al-Shathri, head of PIF’s Securities Investments Private Equity Section, who described the returns as “rewarding.”
Al-Shathri said these markets included Egypt, Bahrain, Jordan, and Oman, noting that the search for opportunities continues through collaboration with the fund’s public and private sector partners, provided a suitable investment climate exists in other regional markets.
Muteb Al-Shathri, head of PIF’s Securities Investments Private Equity Section. AL-EQTISADIAH
He added that the launch of the fund’s regional investment companies reflects the attractiveness and promising opportunities in the MENA region — among the fastest-growing markets globally — while also aiming to strengthen the PIF’s investment partnerships, those of its portfolio companies, and Saudi private sector engagement with targeted regional markets.
This approach, he added, supports the development of long-term strategic economic partnerships to achieve sustainable returns, enhance the fund’s assets, and diversify Saudi Arabia’s revenue sources in line with Vision 2030 objectives.
Al-Shathri said: “The PIF’s recent regional activities are fully aligned with Saudi Arabia’s Vision 2030 strategy.”
The regional investment companies also enable the Saudi private sector to expand its investment footprint across MENA, creating strategic economic collaboration opportunities with private sector players in target markets, while supporting the growth and diversification of the Saudi economy.
Regarding the scale of the deals, Al-Shathri noted that some were announced as private acquisitions, while many of the companies PIF invested in are now publicly traded, adding that comparing share prices at the time of entry with current levels demonstrates strong returns.
According to Al-Shathri, PIF has established offices for its regional investment companies in four key markets — Cairo, Manama, Amman, and Muscat — bringing together the fund’s investment expertise alongside national talent from each country.
“These offices, set up more than two years ago, have been pivotal in identifying suitable opportunities and helping PIF’s companies and the Saudi private sector enter these markets,” he said.
He further said that over the past two years, they have completed more than 10 investment deals across a range of companies and new projects, all of which have seen growth in size, scope, revenues, and profits.
On the performance of regional companies, he explained that activity levels vary depending on market conditions, but operations and asset management continue, adding that the Egyptian market remains one of the largest, with many high-performing companies present.
Highlighting key investments, Al-Shathri pointed to PIF’s 2021 investment in ADES, a well-known oil well drilling company that was traded on the London market before being taken private for two years and later publicly listed. ADES recently signed an agreement with the Syrian Petroleum Co. to develop oil and gas fields and operates in over 20 countries across four continents.
Diverse and promising acquisitions
Al-Shathri detailed specific market investments, beginning with the Saudi-Egyptian Investment Co., which initially acquired stakes in three private-sector companies: B.Tech, a leading electronics and home appliance distributor; CERA Group, the largest private education provider in Egypt; and Cleopatra Hospitals Group.
The company also invested in four public-sector entities: Abu Qir Fertilizers and Chemicals Industries Co., Misr Fertilizers Production Co., e-Finance for financial and digital investments, and Alexandria Container & Cargo Handling Co., the latter of which was recently fully divested.
The Saudi-Jordanian Investment Co. invested in three promising Jordanian firms: Opensooq platform, Capital Bank Group, and Al-Youm Bakery, and announced a major project in healthcare and medical education — the Kingdom Healthcare and Medical Education Project.
The Saudi-Bahraini Investment Co. recently signed an agreement with Mumtalakat, Bahrain’s sovereign wealth fund, to enhance cooperation and investment in strategic sectors. This follows a memorandum of understanding between PIF and Mumtalakat in March 2024 to expand collaboration opportunities.
Al-Shathri added that the Saudi-Omani Investment Co. acquired a 9.8 percent stake in Abraj Energy Services, 3.75 percent in OQ Basic Industries, and 4.9 percent in OQ Oman Gas Networks, for a total investment of $163 million. The company also signed an MoU with the Oman Investment Authority to expand cooperation and support new investment opportunities in the sultanate.
Investment based on clear principles
Al-Shathri emphasized that PIF establishes companies based on strict investment criteria, aiming for sustainable returns in line with calculated risk levels, stressing that returns are received as expected.
“Our investment policy is open to all sectors in every market, though each market has its own competitive advantages,” he said.
He added: “We always target quality investments with rewarding, sustainable returns while creating positive social and economic impact in each market.”
Ongoing market monitoring and research
As for future announcements, Al-Shathri said: “We are constantly monitoring the markets and have a team of experts at the fund working in the research sector. If we identify opportunities in other markets, they will be presented in line with PIF’s standard procedures.”
He added that the fund always pays close attention to the capabilities of the company and other shareholders, “ensuring they are of a very high standard not just in terms of the company’s financial value, because financial value can only be preserved and grown by strong management and partners.”
Domestic focus and strategic partnerships
Regarding the Saudi economy, Al-Shathri said that domestic matters are a priority for the PIF, especially since Saudi Arabia has the largest economy in the region.
He added: “We are always keen to allocate most of our investments within Saudi Arabia and attract investment funds to the country.”
Recently, the fund closed a deal between a consortium of BlackRock investors and Saudi Aramco in the Al-Jafurah field. It is worth noting that BlackRock’s infrastructure investments in Saudi Arabia exceed $20 billion, according to previous announcements.
On the key companies targeted by the fund, Al-Shathri said some will be announced soon, emphasizing that PIF’s strategy is clear: to seek high-growth companies that serve the fund’s objectives and align with Vision 2030 goals.
He pointed out that the fund engages with numerous companies that see significant value in partnering with it, adding that PIF’s efforts go beyond launching investment opportunities and providing regional expansion capabilities, emphasizing that they also include contributing to the companies’ growth, improving governance, and enhancing prospects for public listing.
