THIS is with reference to the report ‘Saudis add $600m to $2.2bn investment pledge’ (Oct 31). A high-profile delegation from Saudi Arabia had visited Pakistan in early October when it had signed 27 memora-ndums of understanding (MoUs) with a major focus on the services sector.

The government was perhaps not aware of the fact that investment in the services sector is not the preferable solution to the country’s economic crisis. We urgently need foreign direct investment (FDI) in the large-scale manufacturing (LSM) sector. Although foreign investment even in the services sector is a welcome sign, it is advisable for the government to work and bring in more investment in the LSM sector to boost exports.

Among the 27 MoUs that were signed, there were at least two that pertained to past and closed transactions; Go Petroleum and Shell Pakistan Ltd. Another MoU was related to the supply of vegetables by Fauji Fresh N Freeze (FFF). Such exports are being executed by hundreds of others on a daily basis for years. Such incidents raise serious doubts about the sincerity and credibility of the government.

Intriguingly, no one spoke about the proposed deep water coastal refinery that was pledged by the Saudi crown prince during his visit to Pakistan a few years ago when the currently imprisoned former prime minister was in power.

This refinery was to be established at Gwadar with a total capital outlay of $10 billion. In essence, the refinery can help Pakistan save billions of dollars that are being spent on the import of petrochemical products annually. Leaving aside political differences, the government must make efforts to have the Saudi offer converted into reality.

Hassan Azam Shibbli
Islamabad

Published in Dawn, November 2nd, 2024