Shared during a joint business summit in Islamabad, this milestone underlines Saudi Arabia 's increasing will to strengthen ties with Pakistan economically. Underlining the possibility for cooperation between the two countries, Al- Falih voiced hope about obtaining at least $2 billion in business ideas during his three-day visit.

As the Kingdom spends extensively in diversifying its economy away from oil reliance, Saudi Arabia is positioned to become the biggest building market in the world. A 2024 study by Knight Frank, a worldwide property consultant, estimates that Saudi Arabia's overall building production will rise to $181.5 billion by 2028, an almost 30% increase from 2023, Reflecting the Kingdom's ambitious objectives, including the development of mega-projects like NEOM, The Red Sea Project, and Qiddiya, which are fundamental to Saudi Arabia's Vision 2030 strategy, this increase reflects

Al- Falih underlined at the Pak-Saudi Business Forum 2024 the enormous building expansion of the Kingdom, saying that "Saudi Arabia is the largest construction site in the world," with contracts for building and material procurement expected to reach $1.8 trillion in the next years, He observed that the value of construction and EPC (engineering, procurement, and construction) contracts was $150 billion in 2023, rising to $180 billion this year, and expected to rise to $200 billion annually going forward.

Many of these agreements would call for imported goods, so Saudi Arabia is looking to Pakistan as a main provider. For Pakistan, this presents a significant chance since the Kingdom wants to get several of the components required for its large-scale building projects from its South Asian partner.

Al- Falih's visit falls during a period of protracted economic crisis for Pakistan, with national currency sinking and foreign exchange reserves declining. In the middle of these difficulties, Pakistan has been aggressively trying to deepen commercial and investment links with allies, With Crown Prince Mohammed bin Salman reiterating his commitment to a $5 billion investment package for Pakistan earlier this year, Saudi Arabia has become a vital friend in this endeavour. By offering much-needed foreign investment and trade prospects, this fresh emphasis on economic cooperation is likely to support Pakistan's efforts at recovery.

In keeping with this cooperation, the office of the Pakistani president declared earlier on Thursday that 25 agreements will be inked during Al-Fallih's visit Signing a new era of economic cooperation between the two countries, these agreements are scheduled to encompass a spectrum of industries including construction, infrastructure, mining, agriculture, and information technology.

Al- Falih's calendar in Pakistan is full of meetings including high-ranking government officials from both nations as well as private sector delegates. The main emphasis will be on completing memoranda of understanding (MoUs), so preparing the foundation for next investments. The office of the Pakistani Prime Minister emphasized that these conferences will enable significant conversations about shared commercial interests, therefore fostering significant alliances across several sectors.

The Minister of Privatization and potential for Pakistan, Abdul Aleem Khan, spoke on the excitement private businesses in Pakistan have in investigating potential prospects with Saudi Arabia. Comprising more than 130 people representing industries including energy, mining, agriculture, tourism, industry, and manpower, Al- Falih's delegation highlights the wide spectrum of areas where the two nations are pursuing cooperation.

The International Monetary Fund (IMF) approved a $7 billion rescue package last month, therefore boosting Pakistan's attempts to stabilize its economy, This bailout depends on Pakistan carrying out sensible reforms meant to improve macroeconomic stability and solve structural problems as well as sound economic policies, The IMF has also underlined the need of ongoing support for Pakistan's economic crisis from bilateral partners like Saudi Arabia as well as from its own growth.

Pakistan has a great chance to boost its economy and build closer relations with one of its most important allies by Saudi Arabia's intention to assign a large share of its building projects to Pakistan. Al- Falih's visit is likely to generate over $2 billion in commercial ideas, therefore setting the basis for increased cooperation benefiting both nations over time, As Pakistan strives to negotiate its economic difficulties with the aid of foreign partners like Saudi Arabia, the visit also signals a pivotal turning point in its larger attempts to draw global investment.

Saudi Arabia grants Pakistan share of $200bn annual construction contracts

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