ISLAMABAD: Saudi Arabia’s Investment Minister Khalid Al-Falih announced on Thursday that the Kingdom aims to allocate a significant portion of its $200 billion annual construction and material procurement contracts to Pakistan. Speaking at a joint business forum in Islamabad, Al-Falih expressed optimism about finalizing at least $2 billion in business proposals during his three-day visit. As Saudi Arabia prepares to become the world’s largest construction market, the Kingdom is investing heavily to diversify its economy. According to a 2024 report by global property consultancy Knight Frank, the total construction output is projected to reach $181.5 billion by the end of 2028, marking a nearly 30 percent increase from 2023. “Saudi Arabia is the largest construction site in the world and we will in the next few years be awarding construction and material procurement contracts reaching about $1.8 trillion,” Al-Falih said at the Pak-Saudi Business Forum 2024. The minister said that last year, “the construction and EPC procurement value was $150 billion;” this year it’s estimated at $180 billion, and expected to rise to “approximately $200 billion annually moving forward.” Al-Falih emphasized that a substantial portion of the inputs for these contracts will be imported, with a strong preference for sourcing from Pakistan. The Saudi minister’s visit comes as Pakistan seeks to strengthen trade and investment ties with friendly nations amid a prolonged economic crisis that has impacted foreign exchange reserves and weakened the national currency. In recent months, Pakistan and Saudi Arabia have enhanced their bilateral trade and investment efforts, with Crown Prince Mohamed bin Salman reaffirming his commitment to expedite a $5 billion investment package for Pakistan this year. Earlier on Thursday, the Pakistani president’s office announced that 25 agreements would be signed during Al-Falih’s visit, heralding a new era of economic cooperation. These agreements will focus on investments in Pakistan’s construction, infrastructure, mining, agriculture, and information technology sectors. “The Saudi minister’s schedule will be packed with meetings with representatives from private companies and top government officials from both countries. Important mutual agreements and memorandums of understanding are expected to be finalized,” stated the Pakistani Prime Minister’s Office following the Saudi delegation’s arrival. “Private companies in Pakistan are eager to engage in investment and business opportunities with Saudi Arabia,” added Abdul Aleem Khan, Pakistan’s privatization and investment minister. Al-Falih will meet with leading Pakistani officials and engage with the local business community, accompanied by a delegation of over 130 members representing various sectors, including energy, mining, agriculture, business, tourism, industry, and manpower. Last month, the International Monetary Fund approved a long-awaited $7 billion bailout for Pakistan, contingent on the implementation of sound policies and reforms to enhance macroeconomic stability and address structural challenges. The IMF emphasized the need for continued support from Pakistan’s development and bilateral partners.