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75% for Pakistan, No Number Yet: The Saudi Fund Is an MoU, Not Money

Ali Raza
6 Min Read
Disclosure:This article is based on publicly available information and professional analysis. While every effort is made to ensure accuracy, the content reflects the author's views and does not constitute financial, legal, or investment advice. Readers are encouraged to consult relevant experts before making decisions.

On Monday 9 November, the Saudi-Pakistan Joint Business Council signed a memorandum of understanding in Karachi to establish a private equity fund, with an initial size described only as “multi-hundred million” and three-quarters of its investments earmarked for projects in Pakistan. Saudi and Pakistani private investors will contribute equally, and the fund will target fast-growing private businesses in agriculture, mining and construction, plus openings from the government’s land bank programme. The Pakistan Times reported the signing on Monday. Unannounced: the exact size, the currency, the closing date, the first investment and the first project.

What was actually signed

The document signed in Karachi is an agreement to establish a fund, not a closed fund with committed capital. Prince Mansour bin Mohammed Al Saud, who chairs the joint business council, told the ceremony the friendship between the two countries was much stronger than any formal agreement, and the fund would give it a solid commercial foundation. He said Saudi investors were actively looking for reliable partners, and a closer look at Pakistan had revealed a more stable economy and genuine opportunities.

Arif Habib, chairman of the Arif Habib Group, called the fund a strong expression of confidence in Pakistan’s investment opportunities. He said perceptions about Pakistan had often overshadowed economic realities, and directing capital to the land bank programme could turn underused assets into productive investments. He called it a first step towards restoring foreign investors’ confidence.

The council, formed by both governments, put the size at “multi-hundred million”, expanding as opportunities arise. Three-fourths will go to Pakistan, the rest to Saudi Arabia.

The 75-25 split, and what it does not say

The split is the one hard number in the announcement, and it is a proportion of an unnamed total: until a size is named, the Pakistan share has no figure. “Multi-hundred million” is a range, not a number. On the lowest reading, 200 million, the Pakistan share would be 150 million; on a 500 million fund, 375 million. Both are PakMirror arithmetic, not announced numbers.

What the split does settle is the direction of travel: most of the money stays in Pakistan, a quarter goes to Saudi projects, so the fund is genuinely two-way. It also marks a change from state-to-state support, private capital rather than a government deposit. Saudi Arabia rolled over its $3 billion deposit with Pakistan earlier this month, but a rollover extends old money; a private equity fund, if it closes, would be new money chasing returns.

The paper trail: third Saudi vehicle in nine months

The fund is not the first Saudi private-sector vehicle announced this year. In February, the Pakistan Regional Economic Forum and Saudi Bridge signed a memorandum in Riyadh for the Saudi-Pakistan Bridge Initiative, a business-to-business platform. Economist Haroon Sharif said the forum had finalised joint ventures worth half a billion dollars.

On 6 June, Pakistan signed a separate memorandum with Saudi and local partners to explore a maritime business district on 140 acres of Karachi Port Trust land on MT Khan Road. The maritime affairs minister said all legal requirements would be met before it proceeded. Five months on, it remains at the exploration stage.

On 26 August, Prince Mansour led a Saudi delegation to the Special Investment Facilitation Council to evaluate ventures across six sectors. On 3 November, the food security minister met the Saudi ambassador on meat and livestock joint ventures, with 17 of 31 slaughterhouses approved after Saudi assessment.

Against that record, the new fund is the first to carry a stated split and a named target list, and the third announcement in nine months that begins as paper. Whether it becomes money depends on the first close, not the ceremony.

Why now

The launch comes as Islamabad and Riyadh deepen defence ties, with no breakthrough in sight in the months-long United States-Iran conflict. The two countries signed the Mecca defence pact on 7 August, an attack on one treated as an attack on all, and Turkiye ratified the Mecca defence pact by 279 votes to 119. Pakistan’s army chief has been to Tehran twice this month mediating. The economic track now runs beside the defence track.

For exporters, the more immediate signal at home is that the government keeps clearing roadblocks: the SME export rule was scrapped last week, removing the 80 percent export gate that had locked small exporters out of financing.

Three tests to watch

First, a number and a date: the exact size and the first close. Second, a name: the first company or project to receive money. Third, a place: the first land-bank asset named. Until those three appear, the fund is a promise with a split, not a flow of money.

PakMirror will track the first close and first investment, with more business and economy news from Pakistan here.

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Ali Raza is a Pakistani journalist and digital news writer with over five years of experience covering Pakistan's political landscape, international affairs, sports, and emerging technology. He has reported on major national events including general elections, military developments, and Pakistan's evolving economic policies. Ali contributes to PakMirror with a commitment to accurate, fast, and reader-first reporting that keeps Pakistanis informed on the stories that matter most.
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