Pakistan must capitalise on $2 trillion Gulf economy through economic integration: Iftikhar Malik

LAHORE, Oct 12 (APP): SAARC Chamber of Commerce and Industry former President Iftikhar Ali Malik said on Sunday that in view of the rapidly evolving global economic landscape, Pakistan must fully capitalise on the $2 trillion economy of the Gulf states through result-oriented regional economic integration, particularly with Saudi Arabia.

In a statement, the trade leader said that the Gulf nations, Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain, and Oman, possess some of the world’s largest sovereign wealth funds and are leading ambitious energy transition plans. He said Pakistan’s trade with these countries remains largely confined to oil imports and labour exports, leaving immense untapped potential in sectors such as IT, food processing, engineering services, and renewable energy.

He observed that initiatives like Saudi Arabia’s Vision 2030, the UAE’s diversification strategy, and Qatar’s investments in knowledge-based industries offer Pakistan vast partnership opportunities if it ensures stability and regulatory clarity. He added that the Gulf states are investing heavily in artificial intelligence, fintech, and biotechnology, areas where Pakistan’s youthful population and IT talent can play a pivotal role.

Iftikhar Ali Malik emphasized the need for Pakistan to pursue a cohesive regional strategy with the Gulf Cooperation Council (GCC), rather than fragmented bilateral ties. Highlighting food security as a shared priority, he said Pakistan could become a reliable partner by reforming its agriculture sector and establishing GCC-Pakistan food corridors supported by Gulf investment in infrastructure.

He said energy cooperation represents another major opportunity, with Saudi Arabia investing heavily in renewables, hydrogen, and smart cities, while Pakistan continues to face challenges of circular debt and costly fossil fuel imports. He proposed that Pakistan’s solar and wind corridors could attract Saudi capital through innovative Islamic green bonds.

Referring to the recent Pak-Saudi defence accord, Iftikhar Ali Malik predicted that if implemented in true letter and spirit, it could pave the way for deeper economic integration with Gulf states and mark “the end of the aid era” for Pakistan, ushering in uninterrupted investment flows from the region.