Pakistan PM Shehbaz Sharif confident that Saudi delegation visit will boost trade ties

Islamabad: Pakistan Prime Minister Shehbaz Sharif on Tuesday expressed confidence that the visit of a high-level delegation from Saudi Arabia would help to further cement trade ties with the oil-rich kingdom.

Shehbaz was addressing the cabinet at the end of a three-day trip of a 50-member delegation led by Saudi Arabia’s Deputy Minister for Investment Ibrahim Almubarak.

According to Radio Pakistan, the premier said in the meeting that the head of the Saudi delegation was appreciative of the determination and preparation demonstrated by the cabinet members during the investment conference.

Shehbaz also commended the role played by the cabinet members especially of the Commerce, Petroleum and Finance ministries as well as the secretaries during the Pakistan-Saudi investment conference.

He expressed confidence that they will continue to work with the same commitment for a better future for the country.

His comments came as the delegation wrapped up its visit, igniting hopes for quick realisation of Saudi investment in the country, which Pakistan urgently needs to revive its stagnant economy.

Separately, Minister for Finance Muhammad Aurangzeb in a press conference said the confidence of investors is increasing in Pakistan as a result of its march towards stability. He said that the visit of the Saudi delegation remained very successful, as the delegation evinced confidence in Pakistan’s economy.

The finance minister said the country is heading in the right direction, as agriculture is witnessing a growth of five per cent on the back of bumper crops. He said the foreign exchange reserves have exceeded USD 9 billion while inflation has reduced from 38 per cent to 17 per cent and it is gradually coming down.

Aurangzeb said the IMF team is expected to visit Pakistan this month during which the contours of a larger and longer programme will be discussed. He said, “Our focus is to ensure macro-economic stability and structural reforms”.

The finance minister emphasised the need to enhance the tax-to-GDP ratio to thirteen to fourteen per cent. He said reforms in the energy sector will be carried out and losses of state-owned enterprises will be reduced.

Aurangzeb also stressed the need for reducing expenditures. Referring to the pension liability, the finance minister said the service structure will be changed over a period of time to reduce its burden, according to Radio Pakistan.