Finance Minister Muhammad Aurangzeb met his Saudi counterpart, Mohammed Al-Jadaan, in Washington, DC, on the sidelines of the IMF–World Bank Annual Meetings. The meeting focused on Pakistan’s privatisation plans and expanding Saudi investment opportunities.
PIA Privatisation in Final Stages
Aurangzeb briefed Al-Jadaan on Pakistan’s ongoing privatisation program, including the sale of Pakistan International Airlines (PIA) and key airports. He reaffirmed the government’s commitment to transparency and efficiency in attracting strategic investors.
The PIA divestment, part of broader reforms aimed at overhauling state-owned enterprises, is in its final stages. The government plans to complete the sale by the end of 2025. This would mark Pakistan’s first major privatisation in nearly two decades, aligning with the IMF’s reform agenda for fiscal discipline and long-term economic stability.
Expanding Pakistan–Saudi Economic Ties
Both finance ministers discussed strengthening trade and investment relations between the two countries. Aurangzeb emphasised that Pakistan remains committed to structural reforms under the IMF program, while Al-Jadaan reaffirmed Saudi Arabia’s continued support for Pakistan’s economic recovery.
Role of IFC and MIGA in Investments
The two sides agreed that institutions such as the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) could play a crucial role in mobilising and de-risking private investments in Pakistan.
Saudi Investment in Infrastructure Projects
Aurangzeb also sought Saudi participation in major infrastructure ventures, including the M-6 highway, ML-1 railway upgrade, and digital infrastructure development. He highlighted Pakistan’s efforts to boost logistics, productivity, and skill development to attract long-term foreign capital.
IMF Agreement and Strategic Cooperation
The meeting followed Pakistan’s recent staff-level agreement with the IMF, which will unlock a $1.2 billion disbursement after board approval. It also comes as both nations deepen economic and defence cooperation following a landmark pact signed in September.
Saudi Arabia’s Longstanding Role in Pakistan’s Development
Saudi Arabia has been a key pillar of Pakistan’s external financing for decades. Through the Saudi Fund for Development (SFD), Riyadh has financed over $1.2 billion worth of development projects in Pakistan since 1976, including initiatives in hydropower, transport, and healthcare.
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