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LAHORE, Oct 14 (APP): Small and Medium Enterprises Development Authority (SMEDA), under leadership of the Ministry of Industries and Production (MoIP), is working on a strategy to reduce trade deficit between Pakistan and Saudi Arabia through joint investment projects in the export-oriented industrial sectors of Pakistan.
The MoIP Secretary Saif Anjum chaired a meeting here at SMEDA Head Office on Tuesday to review the industrial sectors having potential for producing value added products for Saudi Arabia as well as the sectors with the capacity to emerge as import substitutes. SMEDA CEO Socrat Aman Rana, senior officials of SMEDA and officials concerned from other ministries attended the meeting on Zoom.
Saif Anjum said that government has planned to enhance country’s overall exports up to USD 120 billion by 2035, for which they will have to identify the more export-oriented and import substitute sectors in the manufacturing industry with high value addition. He observed that currently improved bilateral relations with Kingdom of Saudi Arabia can play pivotal role in making a paradigm shift in enhancing exports and investment volume of Pakistan.
On this occasion, Socrat Aman Rana observed that to expand trade and investment with Saudi Arabia, initially they will have to give priority to the current potential sectors like leather foot ware, sports goods, surgical instruments, cutlery, textile and apparel. However, he suggested to consult the industry’s key stakeholders to further expand the potential sectors’ base.
A presentation shared in the meeting revealed, “Currently, Pakistan’s exports to Saudi Arabia stand at approximately USD 734 million and imports from KSA at USD 4.47 billion, resulting in a trade deficit of USD 3.37 billion.” To address this imbalance, a Five-Year Industrial Development and Trade Diversification Strategy is being advanced for industrial modernization and targeted upgradation in coordination with other concerned divisions.
The strategy, under work, aims to double Pakistan’s exports to KSA and reduce the net bilateral trade deficit by 25 percent through strategic cooperation and joint ventures.
A programme is also being proposed to strengthen value chains through partnerships with leading Saudi retail, healthcare and sporting goods firms under long-term purchase commitments.
The preliminary consultations with leading industry representatives, multiple joint venture opportunities between Pakistan and Saudi Arabia were identified across key sectors such as cutlery (Wazirabad), surgical instruments (Wazirabad), textiles (Faisalabad), sports goods (Sialkot) and leather footwear. These initiatives align with the shared vision of the leadership of both countries to deepen industrial cooperation, expand non-oil trade and empower SMEs as engines of sustainable economic growth.