Pakistan and Saudi Arabia have signed 27 memorandums of understanding (MoUs) during the recent visit of a Saudi investment delegation, pledging investments exceeding $2.2 billion.
These MoUs span a variety of critical sectors, including energy, agriculture, IT, health, education, and mining.
One key project, the White Oil Pipeline, is anticipated to be completed by 2025, improving petroleum delivery systems in Pakistan. Additionally, a 500MW hybrid power project combining solar and wind energy is likely to commence in the first half of 2025.
In the agricultural sector, Saudi Arabia is set to invest $70 million by 2025, aiming to boost Pakistan’s agricultural output and exports. Similarly, the IT and digital transformation sectors will see phased project implementation from 2025, including an e-education initiative and the launch of a cybersecurity plan by late 2024 till 2025 to protect digital infrastructure.
Significant developments are also expected in the industrial sector, with textile and surgical equipment factories planned for both countries by 2025. The mining sector will benefit from Saudi investments in Pakistan’s copper, gold, and rare metal deposits.
Saudi Arabia also plans to set up semiconductor manufacturing facilities, with initial stages to be completed by 2026, along with investments to promote the electronics industry in Pakistan.
The MoUs include several initiatives in education, with projects starting in 2025. Technical and vocational training to prepare skilled manpower is among the key priorities for both nations.
The path from MoU to project implementation involves several stages, including feasibility studies. Once approved, financing agreements will be finalized, followed by the signing of final agreements, after which work on the projects will begin.
