Pakistan’s Punjab announces Saudi Industrial City, offers 10-year tax break to potential investors

Officials exchange agreements as Maryam Nawaz Sharif, Pakistan’s chief minister of Punjab province, hosts the Saudi-Pak Joint Business Council in Lahore on October 11, 2025. (Handout/Punjab government)
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Updated 12 October 2025
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Pakistan’s Punjab announces Saudi Industrial City, offers 10-year tax break to potential investors

  • Move unveiled during meeting between Punjab CM Maryam Nawaz Sharif and Saudi delegation in Lahore
  • The chief minister says one-time customs duty exemption will be offered to investors from the Kingdom

ISLAMABAD: The administration of Pakistan’s eastern province of Punjab on Saturday announced its decision to establish a Saudi Industrial Estate while offering a 10-year tax exemption to investors from the Kingdom, according to an official statement.

The plan was unveiled during a meeting between Punjab Chief Minister Maryam Nawaz Sharif and a delegation of the Saudi-Pak Joint Business Council in Lahore to discuss investment prospects in the province.

The delegation, led by Prince Mansour bin Mohammad Al Saud, arrived in Pakistan on Wednesday to hold talks with officials and business leaders to expand bilateral trade and investment ties.

The visit aimed to deepen strategic relations between the two nations following last month’s defense pact signed in Riyadh, under which aggression against either country would be treated as an attack on both.

According to a statement by the Punjab administration’s media wing, the chief minister highlighted business opportunities in the province during a detailed briefing for the delegation.

“She ... announced to establish a special Saudi Industrial Estate in Punjab, where a 10-year income tax exemption and a one-time customs duty exemption will be given to the potential Saudi investors,” the statement said. “A special fast track will also be established in the Chief Minister’s Office for the Saudi Industrial Estate.”

Sharif described the province as the backbone of Pakistan’s economy and said her government would welcome Saudi investments across key sectors, including energy, agriculture, mining, tourism and logistics.

During the meeting, the Saudi delegation expressed interest in projects in livestock, mining, infrastructure and IT, according to the statement.

It also said that Prince Mansour praised the Punjab government’s public welfare initiatives.

The chief minister called for the formation of joint working groups between Pakistan and Saudi Arabia in priority sectors to boost cooperation.

She said her administration’s policy for investors was one of “no delay and immediate delivery.”


At UNSC, Pakistan warns competition for critical minerals could fuel global conflict

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At UNSC, Pakistan warns competition for critical minerals could fuel global conflict

  • The demand for critical minerals has surged worldwide due to rapid expansion of electric vehicles, advanced electronics and clean energy technologies
  • Pakistan’s representative says all partnerships in critical minerals sector must be ‘cooperative and not exploitative’ and respect national ownership

ISLAMABAD: Ambassador Asim Iftikhar Ahmad, Pakistan’s permanent representative to the United Nations (UN), has warned that intensifying global competition over critical minerals could become a new driver of global conflict, urging stronger international cooperation and equitable access to resources vital for the world’s energy transition.

The warning comes as demand for critical minerals and rare earth elements surges worldwide due to the rapid expansion of electric vehicles, advanced electronics and clean energy technologies, with governments and companies increasingly competing to secure supply chains while raising concerns that this may lead to geopolitical rivalries in the coming years.

Speaking at a Security Council briefing on ‘Energy, Critical Minerals, and Security,’ Ahmad said experience showed that the risks of instability increased where mineral wealth intersected with weak governance, entrenched poverty and external interference.

“Access to affordable, reliable and sustainable energy is essential for development, stability and prosperity. The global transition toward renewable energy, electric mobility, battery storage and digital infrastructure has sharply increased the demand for critical minerals,” he said.

“This upsurge has generated new geopolitical and geo-economic pressures. If not managed responsibly, competition over natural resources can affect supply chains, aggravate tensions, undermine sovereignty and contribute to instability.”

In several conflict-affected settings, he noted, illicit extraction, trafficking networks and opaque financial flows have fueled armed conflict and violence, weakened state institutions and deprived populations of legitimate revenues.

“The scramble for natural resources and its linkage to conflict and instability is therefore not new,” Ahmad told UNSC members at the briefing. “Pakistan believes that natural resources must serve as instruments of economic development and shared prosperity, and not coercion or conflict.”

He urged the world to reaffirm the right of peoples to permanent sovereignty over their natural resources, saying all partnerships in the critical minerals sector must be cooperative and not exploitative, respect national ownership, ensure transparent contractual arrangements and align with host countries’ development strategies.

“In order to prevent the exploitation of mineral-producing countries and regions, particularly in fragile and conflict-affected settings, support their capacity-building for strengthening domestic regulatory institutions, combating illicit financial flows, ensuring environmental safeguards, and promoting equitable benefit-sharing with local communities,” he asked member states.

“Promote equitable participation in global value chains. Developing countries must be enabled to move beyond extraction toward processing, refining and downstream manufacturing. Technology transfer, skills development and responsible investment are essential to avoid perpetuating structural imbalances.”