KARACHI: Pakistan has announced plans to significantly increase its agricultural and food exports to Saudi Arabia, aiming to reach $3 billion annually within the next two years. This development follows the Makkah Joint Defence Agreement, a strategic pact between Pakistan, Saudi Arabia, and Türkiye, which has laid the groundwork for strengthened economic and defense ties. The agreement, concluded on August 7, includes provisions for mutual defense and enhanced cooperation in military capabilities and technology.
According to Pakistan Businessmen and Intellectuals Forum, the recent progress in trade relations was highlighted by the visit of a high-level Saudi delegation to Islamabad from August 26 to 28, led by Saudi Minister for Environment, Water, and Agriculture, Engineer Abdulrahman Al-Fadley. The delegation identified key sectors such as rice, halal meat, fresh fruits, and water-efficient agricultural technologies as priorities. The focus on agriculture and food security is seen as a crucial element of the evolving economic relationship between the two nations.
Pakistan's current merchandise exports to Saudi Arabia stand at approximately $692 million, with significant contributions from rice and halal meat. Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum, emphasized the need for Pakistan to expand its export capacity significantly to meet the ambitious $3 billion target. Despite a decline in overall food exports, the opportunity to access the Saudi market is viewed as a potential catalyst for reversing these trends.
Saudi Arabia, which imports around 70 percent of its food, presents a valuable market for Pakistan. However, competition from countries such as India, Brazil, and Australia poses challenges. Success in this market will depend on competitive pricing, reliable supply chains, and compliance with Saudi food-safety standards.
To facilitate this growth, Mian Zahid Hussain has proposed the creation of a joint Pakistan-Saudi Agri-Food Export Task Force to set specific targets and monitor progress. He advocates for the expedited approval of Pakistani processing units and stresses the importance of investing in logistic infrastructure to ensure consistent and quality supply.
The strategic partnership, bolstered by the leadership of Prime Minister Mian Muhammad Shehbaz Sharif and Field Marshal Syed Asim Munir, aims to translate defense cooperation into economic gains. Achieving the export target is expected to boost farmers' incomes, create employment, and enhance Pakistan's foreign-exchange reserves.