Pakistan, Saudi Arabia to Launch Joint Ventures in Export-Oriented Sectors to Narrow Trade Deficit
Special Report
Lahore, Oct 14, :
The Small and Medium Enterprises Development Authority (SMEDA), working under the Ministry of Industries and Production (MoIP), has initiated a comprehensive strategy to reduce Pakistan’s trade deficit with Saudi Arabia through joint ventures and targeted investments in export-oriented industrial sectors.
A high-level meeting held at SMEDA headquarters, chaired by Federal Secretary for Industries and Production, Mr. Saif Anjum, reviewed potential sectors that can produce value-added products for export to Saudi Arabia and those capable of serving as import substitutes. The meeting was attended by SMEDA CEO, Mr. Socrat Aman Rana, senior SMEDA officials, and representatives from other ministries through Zoom.
Mr. Anjum stated that the Government of Pakistan aims to increase the country’s exports to USD 120 billion by 2035, emphasizing the need to identify high value-added and export-driven manufacturing sectors. He highlighted that the improving bilateral relations between Pakistan and the Kingdom of Saudi Arabia could play a transformative role in expanding trade and investment between the two countries.
Speaking on the occasion, Mr. Socrat Aman Rana said that Pakistan’s priority sectors for Saudi collaboration include leather footwear, sports goods, surgical instruments, cutlery, textiles, and apparel. He also recommended broader consultations with key industry stakeholders to further expand potential areas of cooperation.
According to a presentation shared in the meeting, Pakistan’s exports to Saudi Arabia currently stand at USD 734 million, while imports from the Kingdom total USD 4.47 billion, creating a trade deficit of USD 3.37 billion. To address this imbalance, SMEDA is developing a Five-Year Industrial Development and Trade Diversification Strategy, focusing on industrial modernization and targeted sectoral upgradation in collaboration with relevant government divisions.
The proposed strategy aims to double Pakistan’s exports to Saudi Arabia and reduce the bilateral trade deficit by 25% through strategic cooperation, industrial partnerships, and joint ventures.
Additionally, a new program is being designed to strengthen value chains by fostering partnerships with leading Saudi retail, healthcare, and sporting goods firms, involving long-term purchase commitments.
Preliminary consultations with key industry representatives have already identified multiple joint venture opportunities across cutlery (Wazirabad), surgical instruments (Wazirabad), textiles (Faisalabad), sports goods (Sialkot), and leather footwear (Karachi and Lahore).
These initiatives are fully aligned with the shared vision of the leadership of both Pakistan and Saudi Arabia to expand non-oil trade, enhance industrial cooperation, and empower SMEs as engines of sustainable economic growth.
