New Delhi: The recently signed Memorandum of Understanding (MoU) between the Punjab government and the Saudi-Pakistan Joint Business Council has been hailed as a potential game-changer for Pakistan’s industrial revival.
The agreement envisions a Saudi-funded industrial city in Punjab, channelling investments into special economic zones (SEZs), logistics, and infrastructure, supported by tax holidays and customs exemptions.
However, beneath the celebratory announcements lies a deeper test of Pakistan’s ability to deliver on its own promises, said a report by Asian Lite.
The Saudi-Pakistan MoU, much like earlier ventures such as the China-Pakistan Economic Corridor (CPEC), remains a gesture of intent rather than a binding commitment.
The report further said that the past experiences offer little optimism.
A decade after the CPEC’s launch, many projects remain incomplete, and Chinese investors have expressed frustration over non-payment issues, security risks, and policy inconsistency, the report emphasises.
For Saudi investment to succeed where others faltered, Pakistan must first confront its chronic problems — unreliable energy supply, bureaucratic hurdles, poor infrastructure, and an unstable foreign exchange regime.
Investors require clear land titles, serviced industrial sites, and guaranteed access to power and logistics before any real progress can take place.
Energy insecurity remains a persistent barrier. Frequent power outages have crippled industrial productivity, while policy instability and tax complications continue to drive away global corporations such as BP, Siemens, and Chevron.
Another major obstacle lies in Pakistan’s foreign exchange restrictions.
In recent years, several multinational companies and foreign airlines have struggled to repatriate profits due to balance-of-payments crises. Without firm guarantees on currency convertibility and profit transfer, foreign investors remain wary.
Experts suggest that Punjab’s proposed industrial city could work only if it focuses on specific sectors aligned with Saudi Arabia’s Vision 2030 — such as construction materials, halal food processing, and medical devices — rather than attempting to host every industry.
Ultimately, the MoU is not an achievement but a test of governance, policy consistency, and Pakistan’s ability to turn promises into performance.
Unless lessons are learned from CPEC’s shortcomings, this Saudi initiative may also remain another unfulfilled dream.
(IANS)
