Pakistan and Saudi Arabia Eye Joint Ventures to Tackle Trade Deficit

Lahore: The Small and Medium Enterprises Development Authority (SMEDA), in collaboration with the Ministry of Industries and Production, is strategizing to reduce the trade deficit between Pakistan and Saudi Arabia through joint investment projects. These initiatives target export-oriented industrial sectors in Pakistan. A recent meeting at SMEDA’s headquarters, chaired by Saif Anjum, Federal Secretary of Industries and Production, highlighted industrial sectors with potential for producing value-added products for Saudi Arabia and those capable of becoming import substitutes.

Saif Anjum emphasized the government’s plan to boost Pakistan’s overall exports to USD 120 billion by 2035 by focusing on export-oriented and import substitute sectors within the manufacturing industry. He noted that strengthened bilateral relations with Saudi Arabia could significantly boost Pakistan’s export and investment volumes.

Socrat Aman Rana, CEO of SMEDA, stated that initial efforts to expand trade with Saudi Arabia would prioritize sectors such as leather footwear, sports goods, surgical instruments, cutlery, textiles, and apparel. He recommended consulting key industry stakeholders to broaden the base of potential sectors.

A presentation during the meeting revealed that Pakistan’s current exports to Saudi Arabia are approximately USD 734 million, while imports from Saudi Arabia are USD 4.47 billion, resulting in a USD 3.37 billion trade deficit. To address this imbalance, a Five-Year Industrial Development and Trade Diversification Strategy is being developed to facilitate industrial modernization and targeted upgrades in collaboration with other divisions.

The strategy seeks to double Pakistan’s exports to Saudi Arabia and reduce the trade deficit by 25% through strategic cooperation and joint ventures. A proposed program aims to enhance value chains through partnerships with leading Saudi retail, healthcare, and sporting goods firms under long-term purchase commitments.

Preliminary consultations with industry representatives have identified joint venture opportunities between Pakistan and Saudi Arabia in key sectors, including cutlery, surgical instruments, textiles, sports goods, and leather footwear. These efforts align with the shared vision of both countries’ leadership to deepen industrial cooperation, expand non-oil trade, and empower SMEs as drivers of sustainable economic growth.