ISLAMABAD: Prime Minister Shehbaz Sharif witnessed the signing of over $2 billion in agreements and memorandums of understanding (MoUs) between Saudi and Pakistani businesses on Thursday, calling the ceremony a precursor to many future partnerships.
The event took place as Sharif welcomed Saudi Investment Minister Khalid bin Abdulaziz Al-Falih at the PM House, describing his visit as an “important milestone” in the economic relations between the two countries.
The Saudi minister brought a large delegation of businessmen representing various economic sectors, including energy, mining, agriculture, tourism and industry, a day earlier, with the aim of finalizing 27 business-to-business deals and MoUs.
The visit took place at a time when Pakistan is seeking to strengthen trade and investment ties with friendly nations, particularly the kingdom, whose leadership reaffirmed its commitment this year to expedite a $5 billion investment package for the South Asian country.
“Today’s ceremony will lead to many more such events in times to come if we are sincere to the cause,” Sharif told the gathering, referring to Pakistan’s commitment to implementing these agreements and turning the MoUs into lucrative business deals.
He assured the Saudi delegation of his government’s full cooperation, saying he would not allow any impediments to thwart the business cooperation between the two countries.
The prime minister said Pakistan’s relations with the kingdom were firmly rooted in history and that both countries had stood by each other through thick and thin.
“Saudi Arabia has always supported Pakistan, whether after floods or earthquakes,” he continued. “This is not only friendship. This is true brotherhood, which we must transform into a relationship of economic development, cooperation and promoting our investments.”
Earlier, the prime minister told the Saudi minister that his visit was “an important milestone in strengthening investment ties between Pakistan and Saudi Arabia, setting the stage for greater collaboration in sectors of mutual interest.”
The prime minister pointed out that Al-Falih’s trip to Pakistan was the third high-level Saudi delegation to visit the country in the last six months, calling it a testament to the growing momentum in the bilateral relationship.
He also reaffirmed Pakistan’s commitment to Saudi Arabia’s sovereignty and territorial integrity, expressing readiness to strengthen defense ties, including support for the kingdom’s Vision 2030, which seeks to develop indigenous defense and security capabilities.
According to the PM Office, the Saudi minister reiterated the kingdom’s commitment to increasing its investment portfolio in Pakistan, particularly in mining, agriculture, food security and infrastructure development.
He further said the signing of 27 agreements and MoUs was just the beginning of the journey.
Pakistan, Saudi Arabia ink multiple agreements valuing $2 billion
https://arab.news/4kuhq
Pakistan, Saudi Arabia ink multiple agreements valuing $2 billion
- Saudi investment minister is heading a large business delegation on three-day visit to Islamabad
- Saudi visit comes as Pakistan seeks foreign investments to navigate tricky path to economic recovery
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.
