According to FinMin, Saudi Arabia is still interested in making a $10 billion investment.

Islamabad is now preparing “bankable” private-sector projects as both sides shift away from crisis financing and toward long-term, business-to-business (B2B) economic engagement, according to Finance Minister Muhammad Aurangzeb, who stated on Wednesday that Saudi Arabia’s previously indicated $10 billion investment appetite for the nation remained unchanged.

While economic talks have progressed concurrently under an expanding Saudi–Pakistan Economic Cooperation Framework launched last month, Pakistan and Saudi Arabia inked a Strategic Defense Pact in September.

Although central bank deposits and deferred oil facilities have been the main ways that Riyadh has helped Islamabad for decades, Crown Prince Mohammed bin Salman last year signaled a move toward equity-based, financially feasible investments, establishing the $10 billion standard.

In an interview with Arab News, Aurangzeb stated that following a protracted crisis, Pakistan was now in a stronger position to pursue such investment because of early indications of macroeconomic stabilization.

After rigorous fiscal and monetary tightening, the currency has steadied, foreign exchange reserves have recovered, and inflation has significantly decreased since reaching a historic high of around 38% in May 2023.

Following years of downgrades, international rating agencies like Fitch and Moody’s have also raised Pakistan’s outlook, citing increased external liquidity and more methodical policy execution.

With the completion of the Fund’s second assessment and an anticipated board decision in early December, Pakistan is halfway through a $7 billion IMF program that was approved in September 2024. These milestones indicate to investors that macroeconomic concerns are progressively waning.

At a time when Pakistan was trying to turn geopolitical goodwill from Saudi Arabia, China, the US, and GCC partners into long-term foreign direct investment, Aurangzeb said that these advancements had bolstered Pakistan’s legitimacy.

As it concentrated on establishing an open and predictable investment environment, the government now desired the private sector to spearhead the next stage of economic involvement.

As far as Saudi Arabia is concerned, they are able, willing, and prepared. In a way, the onus is now on us to develop bankable and investable initiatives, the finance minister stated.