In a significant development, Pakistan and Saudi Arabia have signed 27 memorandums of understanding (MoUs) during a recent visit by a Saudi investment delegation, committing to investments exceeding $2.2 billion. These agreements cover various critical sectors, including energy, agriculture, information technology, health, education, and mining.
Among the key projects is the White Oil Pipeline, expected to enhance petroleum delivery systems in Pakistan, with completion anticipated by 2025. Additionally, a 500MW hybrid power project, integrating solar and wind energy, is set to commence in the first half of 2025.
In agriculture, Saudi Arabia plans to invest $70 million by 2025 to enhance Pakistan’s agricultural output and boost exports. The information technology sector will also see phased project implementations starting in 2025, featuring an e-education initiative and a cybersecurity plan aimed at safeguarding digital infrastructure, with implementation beginning by late 2024.
The industrial sector is poised for growth, with plans for textile and surgical equipment factories in both countries by 2025. Saudi investments will also target Pakistan’s mining sector, focusing on copper, gold, and rare metal deposits.
Moreover, Saudi Arabia intends to establish semiconductor manufacturing facilities, with initial phases expected to be completed by 2026, alongside efforts to promote the electronics industry in Pakistan.
The MoUs include educational initiatives, with projects scheduled to start in 2025. Key priorities will be technical and vocational training aimed at preparing skilled manpower for both nations.
The process from MoU to project execution involves several stages, including feasibility studies. Once these studies are approved, financing agreements will be finalized, leading to the signing of final contracts before the commencement of project work.
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