By Staff Reporter
ISLAMABAD: Saudi Arabia’s Manara Minerals will sign an agreement with Barrick Gold and Pakistani state-owned enterprises within weeks to acquire a stake in the Reko Diq copper-gold project, Saudi Investment Minister Khalid Bin Abdul Aziz Al Faleh said on Thursday.
Addressing the Pak-Saudi Business Forum 2024 in Islamabad, Al Faleh said the agreement would mark the beginning of Manara’s partnership with Pakistan’s SOEs and Barrick Gold in the Reko Diq project in Balochistan province.
“But the first one we hope to conclude in the next weeks is for them to enter the Reko Diq project with the SOEs of Pakistan and Barrick Gold, and seize our partnership,” Al Faleh said.
Reko Diq, owned 50% by Barrick, 25% by three federal SOEs, 15% by Balochistan province on a fully funded basis, and 10% by Balochistan province on a free carried basis, offers significant economic opportunities.
Al Faleh highlighted Saudi Arabia’s interest in investing in Pakistan’s renewable energy sector and boosting trade ties.
“Saudi Arabia is the largest construction site in the world… We will be in the next few years awarding construction and material procurement contracts worth about $1.8 trillion. The value of construction and E&P procurement will reach about $200 billion annually year after year,” the minister said.
“Fortunately for our partners in Pakistan, a lot of the input into those contracts is going to be imported, and we want it to be imported from Pakistan, all things being equal.”
Al Faleh hailed Pakistan-Saudi Arabia ties, saying there were “no limits” to the possibilities of economic cooperation between the two countries.
“I think there are essentially no limits to what Saudi Arabia and Pakistan can do in the economic sphere, just like there are no limits to our friendship, to our bonds, to our historic relations,” he said.
A day earlier, Prime Minister Shehbaz Sharif said Islamabad and Riyadh would sign agreements worth around $2 billion during the delegation’s visit, including trade and investment pacts as well as some Memorandums of Understanding (MoUs).
Al Faleh confirmed that the two countries were presiding over 27 “organic agreements” and MoUs worth around $2 billion, which would be signed throughout the day.
“First and foremost, we want to support Pakistan in continuing its economic stabilisation. Without Pakistan reaching its economic stability, it’s very difficult to do things together,” the minister added.
Minister Faleh also expressed his satisfaction regarding trade between the two countries, noting that it had increased by 80 percent — from $3 billion in 2019 to $5.4 billion.
Recalling an investment package agreed upon in April during PM Sharif’s visit to Saudi Arabia, the minister said his country was “committed to and extremely encouraged” by the Saudi crown prince’s announcement “committing the front end of Saudi investment to Pakistan which is $5 billion” “I think these numbers, in my opinion, are only the tip of the iceberg.”
Meanwhile, Pakistan and Saudi Arabia signed agreements and memorandums of understanding (MoUs) worth over $2 billion on Thursday.
Saudi Investment Minister Al-Falih met Prime Minister Sharif in Islamabad, with the two sides inking 27 deals spanning energy, mining, agriculture, tourism, and industry.
The signing ceremony comes as Pakistan looks to strengthen trade and investment ties, particularly with Saudi Arabia, which has pledged to expedite a $5 billion investment package for the South Asian nation.
“This is just the beginning of our journey,” Al-Falih said, according to a statement from the Prime Minister’s Office.
Sharif hailed the visit as an “important milestone” in bilateral economic relations, praising Saudi Arabia’s support for Pakistan during times of crisis.
“Pakistan and Saudi Arabia enjoy historic ties, and we must transform this friendship into a relationship of economic development and cooperation,” Sharif added.
Thursday’s agreements mark the third high-level Saudi delegation to visit Pakistan in six months, underscoring growing momentum in bilateral relations.
Pakistan reiterated its commitment to Saudi Arabia’s sovereignty and territorial integrity, and expressed support for the kingdom’s Vision 2030 development plan.
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