Pakistan is eager to broaden its trade relationship with Saudi Arabia, targeting a larger share of the $5.5 billion bilateral trade market. The country is looking to diversify its exports beyond traditional commodities. It aims to establish new economic partnerships, according to Jam Kamal Khan, Pakistan’s Federal Commerce Minister.
During the conclusion of Pakistan’s first standalone ‘Made in Pakistan’ exhibition and business forum in Jeddah, Khan highlighted the potential for Pakistani businesses to increase exports to Saudi Arabia. This is particularly true in sectors beyond petroleum and minerals, which currently make up the bulk of trade between the two nations. Khan mentioned that Pakistan’s annual export to Saudi Arabia is close to $600 to $700 million. He considered this figure small compared to the trade potential between the two countries.
“We are exploring new areas where both Pakistani and Saudi companies can collaborate to boost trade,” Khan remarked. He underscored the exhibition’s role in strengthening economic ties. “The event marks an opportunity to unlock new business avenues.”
In October, Saudi Arabia exported goods worth SR614.2 million ($164 million) to Pakistan, constituting 0.7% of the Kingdom’s total exports. In return, Pakistan exported SR249.5 million worth of products to Saudi Arabia, making up just 0.3% of Saudi Arabia’s total imports. With Saudi Arabia’s large consumer market, growing demand, and Vision 2030’s focus on economic diversification and foreign investment, the Kingdom presents significant opportunities for Pakistani businesses.
Pakistan is also eyeing expansion into Africa. It sees it as a major market where it can leverage the competitive edge of its small and medium enterprises (SMEs).
Reflecting on his recent visit to Saudi Arabia, Khan remarked on the longstanding brotherly ties between the two nations. He expressed optimism about the timing of the exhibition. He pointed out the importance of these interactions in boosting bilateral economic cooperation.
“Although this exhibition should have happened earlier, it is happening now, and that is the right moment,” he said.
The exhibition saw the participation of senior Saudi officials from the Ministries of Investment and Commerce, along with representatives from the Federation of Saudi Chambers. Khan spoke highly of the fruitful discussions. He expressed confidence that the event would have a positive impact on future trade between the two countries.
Strengthening Workforce Collaboration
Khan emphasized the need for Pakistan to increase its involvement in Saudi Arabia’s evolving economic landscape, particularly through the upskilling of its large expatriate workforce in the Kingdom. With over 3 million Pakistanis currently residing in Saudi Arabia, many of them in less-skilled roles, Khan sees an opportunity to enhance the contribution of Pakistani workers by focusing on higher-skilled sectors, particularly information technology (IT).
“Pakistani human resources are affordable, highly capable, and available in large numbers. They can be a key asset in sectors aligned with Vision 2030, including IT and the upcoming 2034 FIFA World Cup,” Khan noted.
Pakistan is also keen to attract Saudi investment in critical sectors such as oil and gas, renewable energy, infrastructure, and logistics. Khan highlighted Pakistan’s strategic location as a transit hub for regional trade. This feature could significantly benefit Saudi investors.
Pakistan is in the process of finalizing its first transit port policy, which will streamline regional trade. This policy is expected to attract further foreign investments, especially from Saudi Arabia.
Addressing Challenges and Boosting Awareness
Khan acknowledged that there are challenges in expanding trade with Saudi Arabia, especially with regard to the lack of awareness among Pakistani exporters about the potential of the Saudi market. According to him, 65% of the exhibitors at the exhibition had never previously exported to Saudi Arabia. This highlights the need for greater awareness efforts.
“There is a major gap in knowledge, and this exhibition aims to bridge that gap, helping Pakistani businesses understand Saudi market demand,” he said. Khan also pointed to the historically narrow focus of trade between the two countries, which has been limited to staple goods like rice and meat.
As part of its strategy to diversify exports, Pakistan is planning a major participation in the upcoming IT exhibition, LEAP 2025, in Riyadh, with more than 80 Pakistani companies set to take part. Khan emphasized that IT is a sector where Pakistan has strong growth potential. There is ample opportunity for collaborations with Saudi businesses.
Enhancing the Investment Climate
Khan stressed the importance of improving the ease of doing business in Pakistan to attract foreign investment. He pointed to the Special Investment Facilitation Council (SIFC), which plays a pivotal role in streamlining investment processes and removing bureaucratic barriers.
“The SIFC has a dedicated desk for Saudi-related projects. It is helping speed up procedures and eliminate unnecessary hurdles,” he explained. Saudi Arabia has also established a ministry to further facilitate bilateral investment and business operations, underscoring the Kingdom’s commitment to enhancing economic ties.
Khan highlighted key industries where Pakistan is targeting growth in Saudi Arabia, including textiles, garments, apparel, sports goods, surgical instruments, and leather products. Although the Saudi market for these goods is relatively small, Khan sees it as an entry point for future growth. This offers opportunities for both large-scale investments and smaller SMEs.
Saudi Investments in Pakistan’s Growth
Khan emphasized Pakistan’s vast potential as an investment destination, citing its 250 million-strong population as a significant consumer market. He also noted the unique brotherly relationship between Pakistan and Saudi Arabia, which provides a foundation for deeper economic cooperation.
“Trade, investment, and cooperation with Saudi Arabia are not just about commerce—they are rooted in a longstanding, deep relationship,” he said.
Discussions between Pakistan and Saudi delegates have already led to agreements worth $2.8 billion. Several deals are in the final stages. Khan expressed optimism that these agreements, along with future initiatives, would pave the way for stronger economic ties and create more opportunities for both countries.
As Pakistan continues to explore opportunities in Saudi Arabia, the country’s strategic location, skilled workforce, and expanding industrial sectors position it as a key economic partner for the Kingdom in the years to come.
