ISLAMABAD: The chief minister of Pakistan’s Punjab province has offered Saudi investors incentives as part of a “special package” to explore opportunities in religious tourism, health, education and infrastructure, state-run media reported this week.
Punjab Chief Minister Maryam Nawaz Sharif met Prince Mansour bin Mohammed Al Saud, the former governor of Saudi Arabia’s Hafr Al-Batin province, on Monday to discuss promoting bilateral relations and mutual cooperation between Saudi Arabia and Punjab, the state-run Associated Press of Pakistan (APP) said.
Pakistan and Saudi Arabia enjoy cordial ties, with Riyadh frequently assisting cash-strapped Pakistan by supplying oil on deferred payment terms and financial support to stabilize the South Asian country’s economy.
“During the discussions, the chief minister invited Saudi investors to explore opportunities in infrastructure, health, education, and religious tourism in Punjab,” APP reported. “She assured Saudi investors of her government’s full cooperation and the provision of incentives under a special package.”
Sharif praised Saudi Arabia’s longstanding cooperation with Pakistan, saying that Riyadh was like “Pakistan’s elder brother and the hearts of the people of both countries beat together.”
“The Punjab government has ensured foolproof security and established a system based on merit to improve the business environment in the province,” the report quoted her as saying.
APP said Prince Mansour assured Pakistan of Saudi Arabia’s support.
“The relationship between Pakistan and Saudi Arabia is crucial for the stability and prosperity of the entire region,” he was quoted as saying. “Saudi Arabia will always stand by Pakistan.”
The Kingdom is also home to over 2 million Pakistani expatriates and serves as the source for most overseas workers remittances for Pakistan. Both countries have forged strong business and economic relations in recent months.
In October 2024, Pakistan and Saudi Arabia signed several memorandums of understanding (MoUs) valued at $2.8 billion. In December, Sharif’s office confirmed that seven of the 34 MoUs had been converted into agreements worth $560 million.
Pakistan’s Punjab offers Saudi investors incentives in health, education and religious tourism
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Pakistan’s Punjab offers Saudi investors incentives in health, education and religious tourism
- Punjab CM Maryam Nawaz meets Prince Mansour, former governor of Hafr Al-Batin province
- Pakistan and Saudi Arabia have sought closer business and economic ties in recent months
Pakistan, ADB sign $730 loan agreements to boost SOE reforms, energy infrastructure
- Both sign $330 million Power Transmission Strengthening Project and $400 million SOE Transformation Program loan agreements
- Economic Affairs Division official says Transmission Project will secure Pakistan’s energy future by strengthening national grid’s backbone
KARACHI: Pakistan and the Asian Development Bank (ADB) on Thursday signed two loan agreements totaling $730 million to boost reforms in state-owned enterprises (SOEs) and energy infrastructure in the country, the bank said.
The first of the two agreements pertains to the SOE Transformation Program worth $400 million while the second loan, worth $330 million, is for a Power Transmission Strengthening Project, the lender said.
The agreements were signed by ADB Country Director for Pakistan Emma Fan and Pakistan’s Secretary of Economic Affairs Division Humair Karim.
“The agreements demonstrate ADB’s enduring commitment to supporting sustainable and inclusive economic growth in Pakistan,” the ADB said.
Pakistan’s SOEs have incurred losses worth billions of dollars over the years due to financial mismanagement and corruption. These entities, including the country’s national airline Pakistan International Airlines, which was sold to a private group this week, have relied on subsequent government bailouts over the years to operate.
The ADB approved the $400 million loan for SOE reforms on Dec. 12. It said the program seeks to improve governance and optimize the performance of Pakistan’s commercial SOEs.
Karim highlighted that the Power Transmission Strengthening Project will enable reliable evacuation of 2,300 MW from Pakistan’s upcoming hydropower projects, relieve overloading of existing transmission lines and enhance resilience under contingency conditions, the Press Information Department (PID) said.
“The Secretary emphasized that both initiatives are transformative in nature as the Transmission Project will secure Pakistan’s energy future by strengthening the backbone of the national grid whereas the SOE Program will enhance transparency, efficiency and sustainability of state-owned enterprises nationwide,” the PID said.
The ADB has supported reforms by Pakistan to strengthen its public finance and social protection systems. It has also undertaken programs in the country to help with post-flood reconstruction, improve food security and social and human capital.
To date, ADB says it has committed 764 public sector loans, grants and technical assistance totaling $43.4 billion to Pakistan.
