Aurangzeb confirms Saudi Arabia $10bn interest, says B2B shift ongoing
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A view of the Pakistan Institute of Medical Sciences (PIMS) in Islamabad. — The News/File
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ISLAMABAD: Finance Minister Muhammad Aurangzeb said on Wednesday that Saudi Arabia, which had previously indicated a $10 billion investment appetite for the country, is now preparing to “bank” private sector projects as both sides move away from crisis financing and toward a long-term, business-to-business (B2B) economic engine.
Pakistan and Saudi Arabia signed a strategic defense agreement in September, while economic discussions have progressed in parallel under the Saudi-Pakistan Economic Cooperation Framework announced last month. For decades, Riyadh has supported Islamabad mainly through central bank reserves and deferred oil facilities, but Crown Prince Mohammed bin Salman last year made a shift toward equity-based, commercially viable investments, setting a benchmark of $10 billion.
In an interview with Arab News, Aurangzeb said that Pakistan is now in a better position to receive such investments due to early signs of economic stability after a long crisis. Inflation, which targets a historic peak of around 38 percent in May 2023, has since eased considerably, the rupee has stabilized and foreign exchange reserves have recovered after severe fiscal and monetary tightening. International rating agencies, including Fitch and Moody’s, have also revised Pakistan’s outlook after years of downgrades, citing better external liquidity and more disciplined policy implementation. Pakistan is in the midst of a $7 billion IMF program approved in September 2024, with the fund’s second review completed and a board decision expected in early December, signaling to investors that macroeconomic risks are gradually easing.
Aurangzeb said these improvements boosted Pakistan’s credibility at a time when it was trying to convert geopolitical goodwill—from Saudi Arabia, China, the United States and GCC partners—into long-term foreign direct investment. The government now wanted the private sector to lead the next phase of economic engagement while it focused on creating a transparent, predictable investment environment.
“From Saudi Arabia’s point of view, they are ready, willing and able. Now, in a sense, the ball will be in our court with investable, bankable projects,” the finance minister told Arab News.
He added that the government’s aim was to go beyond short-term financing arrangements: “This is not aid, it has to lead to trade and investment. Because, quite frankly, it will bring stability at both ends.”
Both governments have identified minerals and mining, IT, agriculture, food and tourism as priority sectors for Saudi investment. Manufacturing is also emerging as a potential area of collaboration, particularly as Saudi Arabia begins preparations to host the 2034 FIFA World Cup, driving demand for sports-related industrial capacity within the kingdom.
Aurangzeb cited Forward Sports Sialkot, a Pakistani sports equipment company that manufactures Adidas’ official World Cup match balls and recently displaced a Chinese rival as the German brand’s biggest football supplier.
Aurangzeb said Forward Sports met with Saudi officials during the Future Investment Initiative (FII) summit in Riyadh last month to explore a model that has high-precision manufacturing in Pakistan, with finishing, packaging and regional distribution moved to Saudi Arabia as part of its industrial localization push. “I just see this as the beginning of that kind of process as we move forward.”
Ricoh Deck and Critical Minerals
A major focus of discussions with foreign investors is Ricoh Deck, Pakistan’s flagship copper and gold mining project in Balochistan and one of the world’s largest developed copper deposits. Operated by Barrick Gold with federal and provincial government stakes, the project has attracted interest from Saudi Arabia through Manara Minerals – which is backed by the Public Investment Fund (PIF) and Madden – which has offered to acquire a 15 percent stake.
Aurangzeb said Mali is close with the long wait for Ricoh Deck. “From my perspective, Mali is close,” he said.
One of the final elements, the minister noted, was the participation of the US Export-Import Bank (USXIM), which temporarily halted new approvals during the recent US government shutdown. With the US government now fully reopened, he said EXIM’s involvement should resume “relatively soon”.
Aurangzeb said the financing structure is now basically in place, with an IFC-led consortium raising about $3.5 billion in project loans, and only final lender approval pending.
He added that he met the IFC managing director and all the consortium partners during a recent visit to Washington, which reinforced his confidence that closure was imminent. The Minister pointed out the potential of Ricoh Deck to transform Pakistan’s stable export base. Annual exports hover around $30 billion, with the mine expected to generate $2.8 billion in export potential from the first year of operation, which is 10 percent of Pakistan’s total exports today.
“It’s a game changer,” he said.
A U.S. official told Arab News on condition of anonymity that a major mineral deal worth more than $1 billion with U.S. investors has been finalized, but Aurangzeb said while interest is high, talks are ongoing.
“For obvious reasons, minerals and mining and critical minerals is a key area of interest. And that’s where we’re headed.” He added: “There is tremendous interest and tremendous potential on our end.”
Aurangzeb said Pakistan’s goal is clear: to improve economic fundamentals and favorable geopolitics for long-term, private-sector-led investment flows, with Saudi Arabia emerging as one of the most fruitful partners in this transformation. “And it’s all about translating that into trade and investment.
