ISLAMABAD, July 4: Saudi Arabia has indicated to make long-term $8-10 billion investment in Pakistan in four major sectors of the economy with a view to greatly enhancing bilateral cooperation between the two countries.

Official sources told Dawn on Monday that the Saudi authorities had expressed their willingness to promote Saudi investment in Pakistan's capital intensive projects. In this regard, they have identified infrastructure, power, petro-chemicals and agriculture sector.

Pakistan was told that equity worth about $800 billion was available in the kingdom which could be utilised in Pakistan and other regional countries. However, the Saudi government expected that Pakistan would ensure improved security situation and consistency in policies.

Sources said that both the governments had authorised Saudi Pak Investment and Agricultural Company to hold a 2-day investment conference in November in Islamabad aimed at exceedingly “facilitating" Saudi investment in the country.

Prior to the conference being termed as a "major event", Saudi Pak officials will hold road shows during the month of October in various cities of the kingdom.

When contacted a senior government official said that the Saudi leadership had assured to help improve Pakistan's perception in the world by promoting substantial Saudi investment in the country.

Asked about the size of the Saudi investment, he claimed, there will be "several billion dollars investment" as was assured by Saudi King Abdullah when he visited Pakistan in February this year.

Responding to a question, he, however, conceded that Pakistan would have to further refine its image along with offering competitive business environment in the country for attracting adequate foreign investment.

He said that Saudi Arabia was also expected to invest in gas pipelines and new oil refineries projects in Pakistan. A top-level Saudi delegation, comprising prominent industrialists and businessmen, had visited Pakistan in May last on the instructions of King Abdullah to identify areas for making new investment in the country, he said.

Saudi businessmen, he said, were also expected to invest in privatisation, real estate, hotel and tourism, industry, telecommunications and information technology (IT).

"The world is witnessing an oil boom these days, which is providing new opportunities to the Saudi investors to invest outside their county. And today we see new avenues for billions of dollars new Saudi investment in Pakistan", the official said.

He pointed out that more Saudi capital would now be flowing into Pakistan due to increasing political and economic relations between the two countries.

Saudi investors, the official said, would be offered required incentives to readily invest in Pakistan. In this respect, he referred to the avoidance of double taxation agreement signed between the two countries recently.

He said that avoidance of double taxation agreement would help attract more Saudi investment in Pakistan. But he said that Pakistan was also interested in signing a Free Trade Agreement (FTA) with the Gulf Cooperation Council (GCC) -- a group in which Saudi Arabia is also represented. "If we sign that agreement, it will help us to attract substantial investment from the Middle East," he said adding that this will also help remove the existing 20-25 per cent duty in Saudi Arabia for Pakistani products.

The volume of trade between the two countries, he said, was largely expected to be enhanced in near future. Currently, the two-way trade is said to be about $4 billion, including the purchase of Saudi oil by Pakistan.