RIYADH, 22 February 2007 — Saudi Arabia and Pakistan have entered into an advanced phase of their relations with the signing of a comprehensive agreement that calls for cooperation in the fields of trade, investment, oil and gas, education, culture, health care, agriculture, consular and security affairs, science and technology, as well as training programs.
The agreement signed by Saudi Minister of Commerce and Industry Hashim Yamani and Pakistani Minister of Commerce Humayun Akhtar here yesterday, also calls for organizing trade exhibitions in both countries and exchange of visits between businessmen of the two countries.
Yamani hoped that the agreement would pave the way for increasing cooperation of the private sector on both sides in setting up joint venture projects. The next session of the joint commission will be held in Islamabad on a mutually convenient date.
Currently, the volume of two-way trade amounted to SR9.44 billion ($2.52 billion), including $329 million of Pakistani exports in 2005. There are 231 joint investment projects with a total capital investment of SR4.75 billion ($1.26 billion). Saudi investments in Pakistan jumped from $18 million last year to $300 million this year.
Akhtar said a significant outcome of his visit was the willingness of Saudi Arabia as the current president of the GCC to look into the possibility of concluding an agreement for Pakistan-GCC cooperation. He said the Saudi Fund for Development (SFD) had financed various projects in Pakistan and would lend its helping hand to the ones coming up in future. Some of the projects already funded include power generation and distribution plants, real estate, banking, telecom, oil and gas sectors.
Pakistan is keen on participating in the Kingdom’s railroad sector projects where they have experience and expertise, Akhtar said. He would also like Pakistani companies’ participation in the multi-billion dollar economic cities to be established in different parts of the Kingdom.
Speaking to newsmen later, Yamani said, in reply to a question, that his ministry was closely monitoring the recent increase in consumer prices of various goods. “We’ll take all measures to ensure that the prices stay at realistic levels and are not jacked up artificially,” he said, referring to the price hike in cement, iron, dairy products, vegetables and other consumer items.
The Saudi minister pointed out that they were also coordinating with the directorate of statistics and the ministries concerned to check the prices on a regular basis and take corrective action.
He attributed the 30 percent hike in housing prices to the gap between supply and demand leading to the surge in prices. “The government is studying this phenomenon and working toward its solution. The issue of amending the mortgage law was also under study, he said, a long-pending demand of the business community.
Currently, once the property is mortgaged for a loan, the house owner cannot go for a second loan till the first one is cleared. This puts him at a disadvantage, since the value of his house far exceeds the loan extended by the bank using his house as security for the debt.