- Special Economic Zones and Saudi investment can transform Pakistan’s agriculture, mining and energy sectors
- Technology partnerships in farming, water management and AI can modernise bilateral cooperation
Interview with Mr. Majyd Aziz, former President Karachi Chamber of Commerce and Industry
PAGE: Tell me something about yourself, please:
Majyd Aziz: I am former President of Karachi Chamber of Commerce and Industry, Employers’ Federation of Pakistan, South Asian Forum of Employers, (UN) Global Compacat Network Pakistan, and Former Chairman of SITE Association of Industry. I am Former Member of Board of Directors of the government-owned Zarai Taraqiati Bank Ltd and Former Chairman of the government-owned SME Bank Ltd. I am also Founding Chairman of All Pakistan Federation of Industries which is the only registered trade union in Pakistan. I am President of our family-owned business group.
PAGE: How do you view bilateral relations between Pakistan and the Kingdom of Saudi Arabia ?
Majyd Aziz: There has always been a fraternal relationship between Saudi Arabia and Pakistan and there is a time-honored bonhomie between Riyadh and Islamabad. In times of need, Saudi Arabia has gone the extra mile to assist Pakistan. A large number of Pakistanis diligently work in various sectors in Saudi Arabia, and their remittances have been of huge importance for Pakistan’s economy. Moreover, there is coordinated policy on defence matters and Saudi Arabia has been taking advantage of the capabilities, competencies, and experience of the Pakistani defence establishment. But much more should be going on between the two countries. Yes, the Haj and Umra facilities are paramount and in the coming Haj, over 180,000 Pakistanis would get the green signal to perform their Haj obligations. Pakistan also looks towards Riyadh on various global issues, including the sensitive issue of Israel. Pakistan strongly voices her concerns at the meetings of OIC too. Pakistan and Saudi Arabia should now take the lead in bringing all 57 Islamic nations under one formidable alliance, since Islamophobia, which is a manifestation of anti-Muslim racism, is mostly due to the growing influence of Islamic nations and leaders and that has unnerved citizens of many non-Islamic countries. Both countries have always stood together in adverse and good times, united by a shared worldview that advocates for peace, stability, and cooperation in the region and beyond. This enduring bond reflects mutual respect and commitment to fostering stronger ties between them.
PAGE: How has Pakistan benefitted from Saudi investors?
Majyd Aziz: It goes without saying that there has been substantial investment from Saudi Arabia. The most important has been Saudi investment to set up the Hub Power Project in the 1990s. Those were the days when no domestic or foreign investors were willing to enter the power sector field. Xenel of Saudi Arabia went full force in setting up 1292 mw at Hub. However, achieving fruition was no easy task. There was as always red tape and the xenophobic mindset of bureaucracy as well as certain politicians. I remember that in 1991, I visited World Bank in Washington and advocated foreign investment in Pakistan. The Senior Executive Vice President assured me that foreign investment would be forthcoming, and she remarked three words, “Wait for Hub’. Fortunately, all loose strings were tied, and Hub Power became a reality. This pioneering project opened the gates for Independent Power Plants and, despite issues, Pakistan has the electricity required for the progress of the economy. Credit goes to Xenel. Food security is a global issue, and it has impacted even Saudi Arabia. Thus, it is imperative that both countries take maximum advantage to focus on agriculture because this is a win-win situation. Both nations must jointly plan their future food and water requirements and should jumpstart with initiatives aimed at tackling these catastrophic issues.
Saudi Arabia has just 1.5% of arable land, and with agriculture consuming 80% of national water resources, water scarcity remains a key challenge. Pakistan needs to modernize its agriculture ecosystem too, but this involves huge investment and changing od dynamics of modern farming. Over the past few years, there have been indications that Saudi government and investors are keen to tap into the Pakistani agriculture ecosystem. The Special Investment Facilitation Council has been formulating policies and strategies to attract significant investment in agriculture and has been lobbying with Arab countries in the Middle East. It aims to cultivate 1.5 million acres of previously unfarmed land and mechanizing existing 50 million acres of agricultural lands through corporate farming. SIFC has been engaging with several Saudi companies to attract investment in the corporate farming sector.
Pakistan’s corporate farming model envisioned that 60% of the crops would contribute to the country’s food security, and the remaining 40% exported, mainly to Gulf countries, to earn foreign exchange.
Saudi Arabia could possibly invest in corporate farming and export the entire crop for its own citizens. In fact, it is also interested to acquire five million tons of Alfalfa for which they have offered to procure at higher prices than market prices.
PAGE: Your perspective on mutual trade between Saudi Arabia and Pakistan:
Majyd Aziz: It would be noteworthy for Pakistan to attract heavy investment in the agriculture, mining, renewable energy, and oil and gas sectors. The Crown Prince has already announced maximum investment in Pakistan. He was magnanimous in declaring during his visit to Pakistan that he may be considered as Ambassador of Pakistan in Riyadh which won the hearts of each and every Pakistani. Pakistani leaders must step up efforts to provide all facilities and support to attract Saudi investment. There should a be a Special Economic Zone reserved for investment from Arab countries. This would encourage investors from Arab countries to invest here. Naturally, there should be no red tape, there should be maximum security, and efficient infrastructure in place. No short cuts or adhocism. Saudi Arabia can be the catalyst for Pakistan to achieve this transformation.
PAGE: What is your standpoint on use of technology for trade between Saudi Arabia and Pakistan?
Majyd Aziz: Saudi Arabia is fully aware of the talent in Pakistan. Hence, many Pakistani IT people are already working on various projects including the Neom City initiative. Pakistan can take advantage of potential Saudi investment in technology that will surely transform Pakistan’s agriculture sector from the present, mostly obsolete farming system to cutting-edge and sustainable modern farming architecture. There is a vital need to build modern, technology-driven warehouses, greenhouses, silos, use of drone technology, Artificial Intelligence, and reducing diseases in livestock, etc. Saudi Arabia has been changing its agriculture ecosystem and Pakistan can learn from this. Water scarcity remains a key challenge, and this is another area where technology could be introduced. Use of high-tech modes on judicious and efficient use of water, on leveraging latest agricultural technology such as precision farming, smart farming, and vertical farming to boost productivity, and on rehabilitating degraded lands to increase arable areas by enhancing vegetation cover and combating desertification are what Pakistan needs to address, and Saudi Arabia can be instrumental in these areas too. All in all, Pakistan needs to ensure that bilateral relations in future should be holistic and for the greater benefit of the citizens. This is ideal for Pakistan, and thus Pakistani leaders and people should take relationship with Saudi Arabia with all sincerity and purpose.