Pakistan, Saudi investors launch multi-million-dollar fund to boost trade

Pakistan and Saudi Arabia have launched a joint private equity fund worth several hundred million dollars to strengthen bilateral trade and encourage private sector investment in both countries.

The fund was launched on Monday by the Saudi-Pakistan Joint Business Council, which was established by the governments of the two countries. Its initial size is expected to reach several hundred million dollars, with the possibility of further expansion depending on investment opportunities across different sectors.

According to the council, 75 per cent of the fund will be directed towards investment projects in Pakistan, while the remaining 25 per cent will be allocated to projects in Saudi Arabia.

The initiative reflects growing economic cooperation between Islamabad and Riyadh, which have maintained close diplomatic and economic ties through regular high-level engagements.

In August, Saudi-Pakistan Joint Business Council Chairman Prince Mansour bin Mohammad Al Saud met Prime Minister Shehbaz Sharif during his visit to Pakistan. The discussions focused on expanding bilateral economic cooperation and identifying new investment opportunities.

During the meeting, the Saudi delegation expressed interest in investing in several Pakistani sectors, including agriculture, ports, highways, airport outsourcing, real estate, energy, power distribution and information technology.

The two countries have also taken steps to strengthen cooperation in agriculture and regional security.

On August 7, Pakistan, Saudi Arabia and Turkiye signed a joint defence agreement aimed at enhancing collective security, expanding military cooperation and promoting regional and international stability.

Later in August, Islamabad and Riyadh agreed to increase Pakistan’s agricultural and food exports to Saudi Arabia, with the target set at $3 billion.

Pakistan has also been seeking Saudi investment in major infrastructure projects. In June, Islamabad invited Saudi investors to participate in the construction of the long-delayed Sukkur-Hyderabad Motorway (M-6) and two other major highway projects.

The M-6 is expected to establish uninterrupted motorway connectivity between Karachi Port and Peshawar, with the network extending towards Gilgit.

The latest investment initiative is expected to provide a new platform for businesses in both countries, encourage cross-border investment and strengthen economic ties through greater private sector participation.