Prime Minister Shehbaz Sharif announces key deals to enhance economic ties with Saudi Arabia, including fishing sector subsidies

Pakistan is poised to strengthen its economic relations with Saudi Arabia, with Prime Minister Shehbaz Sharif announcing plans to sign agreements worth $2 billion during a visit from a Saudi delegation next week. This announcement came during a federal cabinet meeting on Tuesday, as the country prepares for the upcoming Shanghai Cooperation Organisation (SCO) summit, scheduled for October 15-16.

The Saudi delegation, led by Minister for Investment Khalid Bin Abdulaziz Al-Falih, will visit Pakistan from October 9 to 11. The delegation comprises representatives from both the government and the private sector, indicating a robust intent to bolster bilateral ties through a series of significant agreements.

Among the key agreements set for ratification by the cabinet is a substantial subsidy plan for the fishing sector, designed in alignment with World Trade Organisation (WTO) regulations. This initiative aims to enhance the sustainability and profitability of Pakistan’s fishing industry, which is a critical sector for many coastal communities.

Furthermore, the cabinet approved a historic agreement to designate Gwadar Port and Shanghai Port as sister ports, a move anticipated to facilitate greater trade and cooperation between the two nations. This decision aligns with the Ministry of Maritime Affairs’ recommendations and underscores Pakistan’s strategic vision for Gwadar as a pivotal hub for maritime trade.

In addition to these agreements, the federal cabinet ratified memorandums of understanding (MOUs) for bilateral political consultations with Rwanda and Ghana, reflecting Pakistan’s commitment to expanding its diplomatic outreach across Africa.

Another important development was the cabinet’s approval to empower judicial magistrates in Gwadar and Hub with the authority to hear narcotics cases. This decision aims to address drug-related issues more effectively in these regions, following recommendations from the Ministry of Law and Justice.

The cabinet meeting also highlighted the progress made in the implementation of the e-office initiative across federal ministries. The Ministry of Information Technology and Telecommunications reported that this e-governance initiative has significantly improved Pakistan’s ranking in the United Nations’ E-Government Development Index (EGDI), with an impressive 14-rank increase. Prime Minister Sharif directed further enhancements to the e-governance framework, indicating that progress would be reviewed in two weeks.

The upcoming visit by the Saudi delegation is seen as a crucial step in fortifying economic ties between the two countries, with the agreements set to address key areas such as investment, trade, and technological cooperation. This collaborative approach aligns with Pakistan’s broader strategy to enhance its economic landscape and attract foreign investment.

As both nations prepare for these pivotal discussions, the anticipation surrounding the agreements signifies a mutual commitment to fostering a prosperous and collaborative future. The outcomes of the visit and subsequent agreements will be closely watched by analysts and stakeholders keen to understand the implications for regional economic dynamics.