The Small and Medium Enterprises Development Authority (SMEDA), under leadership of the Ministry of Industries and Production is working on a strategy to reduce trade deficit between Pakistan and Saudi Arabia through joint investment projects in the export oriented industrial sectors of Pakistan.
A meeting held at the SMEDA head office, chaired by Mr. Saif Anjum, Federal Secretary, Industries and Production, reviewed industrial sectors with potential for producing value-added products for Saudi Arabia, as well as those with the capacity to emerge as import substitutes. Mr. Socrat Aman Rana, CEO of SMEDA, and several senior officials of SMEDA were also present on this occasion. The concerned officials from other ministries attended the meeting on Zoom.
Mr. Saif Anjum said that the government of Pakistan has planned to enhance the country’s overall exports up to USD 120 billion by 2035. To achieve this, we will have to identify more export-oriented and import-substitute sectors in the manufacturing industry with high value addition. He observed that the currently improved bilateral relations with the Kingdom of Saudi Arabia can play a pivotal role in making a paradigm shift in enhancing exports and investment volume of Pakistan.
Speaking on this occasion, Mr. Socrat Aman Rana, CEO of SMEDA, observed that to expand trade and investment with Saudi Arabia, we will initially have to prioritize current potential sectors such as leather footwear, sports goods, surgical instruments, cutlery, textiles, and apparel. However, he suggested consulting the industry’s key stakeholders to further expand the potential sectors’ base.
A presentation shared in the meeting revealed, “Currently, Pakistan’s exports to Saudi Arabia stand at approximately USD 734 million and imports from KSA at USD 4.47 billion, resulting in a trade deficit of USD 3.37 billion.” To address this imbalance, a Five-Year Industrial Development and Trade Diversification Strategy is being advanced for industrial modernization and targeted upgradation in coordination with other concerned divisions.
The strategy, currently in development, aims to double Pakistan’s exports to KSA and reduce the net bilateral trade deficit by 25% through strategic cooperation and joint ventures.
A program is also being proposed to strengthen value chains through partnerships with leading Saudi retail, healthcare, and sporting goods firms under long-term purchase commitments.
The preliminary consultations with leading industry representatives identified multiple joint venture opportunities between Pakistan and Saudi Arabia across key sectors such as cutlery (Wazirabad), surgical instruments (Wazirabad), textiles (Faisalabad), sports goods (Sialkot), and leather footwear. These initiatives align with the shared vision of the leadership of both countries to deepen industrial cooperation, expand non-oil trade, and empower SMEs as engines of sustainable economic growth.
