February 24, 2025 (MLN): The recent visit of Finance Minister Muhammad Aurangzeb to Saudi Arabia has marked a pivotal moment in strengthening Pakistan’s economic ties with the Kingdom, paving the way for increased investments, trade expansion, and workforce development.Attending the AlUla Conference for Emerging Market Economies, organized by the International Monetary Fund (IMF), the minister highlighted Pakistan’s commitment to securing long-term economic benefits through foreign direct investment (FDI), business-to-business (B2B) collaborations, and government-to-government (G2G) agreements.A key outcome of the visit is the prospect of enhanced Saudi investments in Pakistan’s industrial and trade sectors.These investments will support Pakistan’s ambitious goal of doubling its exports from the current $30 billion to $60bn within the next 3 to 5 years through increased bilateral trade and investment, said the Finance Minister during an interview with Asharq and Bloomberg on the sidelines of the AlUla Conference.Saudi Arabia’s market presents a strategic opportunity to accelerate export growth and strengthen Pakistan’s global trade position.The visit underscored the growing demand for skilled Pakistani labor in Saudi Arabia, particularly as the Kingdom progresses toward its Vision 2030 objectives.With over 2 million Pakistanis already employed in blue-collar jobs, efforts are underway to facilitate their transition into higher-paying technical and professional roles.In collaboration with Saudi authorities, Pakistan’s Ministry of Education and Professional Training is developing an education policy aimed at training one million young individuals annually in technical skills, ensuring a steady pipeline of skilled workers for the Gulf region.The expansion of Saudi Aramco into Pakistan’s downstream petroleum sector further solidifies the economic partnership between the two nations.Additionally, Pakistan continues to contribute to the Gulf Cooperation Council (GCC) region’s economic landscape across sectors such as mining, agriculture, and IT services. Strengthening these areas will unlock new trade opportunities and foster economic stability.Remittances from Pakistani workers in Saudi Arabia remain a vital source of financial inflow, and as demand for skilled professionals increases, remittance contributions are expected to grow, providing additional economic support. The finance minister’s visit has reaffirmed Pakistan’s vision for long-term economic sustainability through strategic alliances, investment inflows, and workforce development, positioning the country for accelerated growth in the years ahead.IMF and World Bank Support for Pakistan’s Climate ResiliencePakistan is one of the most vulnerable countries in terms of climate change. In my perspective, the focus should be less on mitigation and more on adaptation, along with a smooth transition into green financing.Recently, Pakistan has received significant support from the Asian Development Bank (ADB) and the World Bank.Additionally, the IMF is set to contribute to the resilience fund. Now, it is crucial for us to come forward with sustainable and bankable projects, not only in terms of the financing that is being made available but also by attracting both local and foreign investment in this sector.Meanwhile, a nine-member delegation of World Bank Executive Directors is currently visiting Pakistan.This delegation, which oversees portfolios of various countries within the World Bank, will discuss economic development projects and explore investment opportunities in Pakistan.AI-driven sectors in PakistanIn the agricultural sector, AI-driven precision farming is expected to increase crop yields by 15% to 20%, said Finance Minister Muhammad AurangzebSimilarly, in the digital banking and services sector, AI has already contributed to a 25% year-on-year increase in IT export services, with even greater potential for growth in the future.He highlighted that digital transformation, accelerated by AI, is fundamentally about achieving better, cheaper, and faster solutions.To sustain this momentum, it is imperative to provide the necessary resources, along with upskilling and reskilling opportunities, for the country's third-largest freelancer population.Currently, Pakistan is in a surplus position in both the current account and the primary account, according to the finance minister.He further stated that the country now aims to consolidate its gains, effectively utilize available fiscal space, and prioritize expenditures that will support and enhance its growth trajectory in the years to come.Additionally, strengthening digital infrastructure will be crucial to ensuring continued progress.Muhammad Aurangzeb emphasized that transformation is not just about technology—it encompasses people, processes, and technology, with the "people" aspect being particularly crucial for reskilling and upskilling.This is essential to prevent jobless growth, a challenge that any country could face if human capital is not adequately prepared for technological advancements.Ultimately, the entire discussion revolves around productivity-led growth, which will serve as a key enabler and game changer for Pakistan’s economy.Copyright Mettis Link NewsPosted on: 2025-02-24T13:35:38+05:00The post FM’s Saudi visit opens doors for trade & investment in Pakistan appeared first on Mettis Global Link.