- Saudi Arabia’s $5 billion commitment and focus on renewable energy, mining, and IT aligns with Pakistan’s growing market of 240 million consumers
·Interview with Mr. Hakim Ali Jatoi — Director, Brick & Wire (Private) Limited
PAGE: Tell me something about yourself, please:
Hakim Ali Jatoi: Born in District Kamber-Shahdadkot, Sindh, I received my early education in the same city before relocating to Karachi for middle and higher education. I hold the distinguished title of Fellow Member at the Institute of Cost & Management Accountants of Pakistan, complemented by qualifications in LLB and an MS in Management Sciences. I am Chief Executive of Hakim Agri Farms and a Director at Brick & Wire (Private) Limited, a company actively involved in the construction and solar energy sectors.
Additionally, I serve as the Secretary & Treasurer of the Karachi Branch Council of ICMA Pakistan. I am committed to knowledge sharing through my role as a Guest Speaker and Lead Trainer at various seminars and workshops, where I cover topics related to Accounting, Finance, Audit, and Corporate and Labour Laws. Furthermore, I contribute as a teaching visiting faculty member at several prestigious universities.
PAGE: How would you comment on the trade between Pakistan and Saudi Arabia?
Hakim Ali Jatoi: The trade relationship between Pakistan and Saudi Arabia has always been significant, reflecting deep-rooted economic and fraternal ties. Traditionally, Saudi Arabia has been a key supplier of crude oil to Pakistan, accounting for around 30% of Pakistan’s annual consumption. On the other hand, Pakistan exports textiles, food products, and construction materials to the Kingdom, making Saudi Arabia its largest trading partner in the Middle East, with bilateral trade standing at $5.7 billion. This trade relationship holds immense potential for expansion, particularly in non-oil sectors.
As Saudi Arabia undertakes economic diversification under Vision 2030, opportunities for Pakistan to supply skilled workers, IT expertise, and agricultural products are growing. Additionally, with Saudi Arabia’s plans to invest $1 billion in Pakistan’s Reko Diq mining project, the scope of economic engagement is broadening. Both nations, driven by their national interests, are looking to enhance their economic ties in new sectors, which will mutually benefit them in the long term.
PAGE: How handy are the remittances being sent by the Pakistani diaspora from Saudi Arabia to Pakistan?
Hakim Ali Jatoi: Remittances from Pakistani workers in Saudi Arabia are a crucial component of Pakistan’s economy. In 2023, Pakistanis working abroad sent back $27 billion, nearly equivalent to Pakistan’s total exports of $27.7 billion for the fiscal year. These remittances not only support millions of families back home but also stabilize Pakistan’s foreign exchange reserves, providing liquidity that helps balance the current account.
As unemployment in Pakistan is projected to rise to 8.5% by FY25, there is a growing need for Saudi Arabia to continue accommodating Pakistan’s young and skilled workforce. This relationship is mutually beneficial: while Pakistan benefits from remittances, Saudi Arabia gains from a steady supply of skilled labour across industries such as IT, engineering, and healthcare. Moreover, remittances from Saudi Arabia remain a key buffer for Pakistan’s economy, supporting domestic consumption and poverty alleviation.
PAGE: What is your take on investment by Saudi Arabia in Pakistan?
Hakim Ali Jatoi: Saudi Arabia’s increasing investment in Pakistan signals a new chapter in bilateral relations. Under Crown Prince Mohammad bin Salman’s Vision 2030, Saudi Arabia is diversifying its economy beyond oil, and Pakistan offers a lucrative market with over 240 million consumers. Saudi Arabia’s pledge of $5 billion in investments, including $1 billion for the Reko Diq mining project, marks a shift toward a more substantial economic partnership. Pakistan has positioned itself as a key destination for Saudi investments in sectors like renewable energy, mining, agriculture, and IT.
Saudi Arabia’s investment in these areas not only helps Pakistan overcome its economic challenges but also aligns with Riyadh’s need to find stable investment opportunities. While the potential is immense, political stability in Pakistan will play a crucial role in attracting and maintaining foreign investments from Saudi Arabia.
PAGE: Saudi Arabia has undertaken several steps to help Pakistan strengthen its economy. Your perspective:
Hakim Ali Jatoi: Saudi Arabia has been a long-time supporter of Pakistan’s economy, providing oil on deferred payments and extending financial aid. In recent years, this support has evolved into a broader economic partnership. Saudi Arabia’s billions in remittances from Pakistani workers and its commitment to $5 billion in investments highlight its strategic interest in Pakistan’s long-term development.
Saudi Arabia’s economic diplomacy, particularly under Vision 2030, has opened new avenues for cooperation in energy, mining, and tourism. The Kingdom’s focus on creating jobs in tourism and other sectors aligns with Pakistan’s need to address its rising unemployment rates. Furthermore, Saudi Arabia’s support in defence and counterterrorism through the Islamic Military Alliance strengthens regional security, a key area of collaboration between the two nations. Ultimately, both countries are leveraging their longstanding fraternal ties to focus on shared economic development, and with the right strategic moves, this partnership can contribute to regional stability and prosperity.