Pakistan, October 11 2024: In a significant boost to Pakistan-Saudi economic relations, prominent Pakistani companies, including Citi Pharma Limited and Pakistan Cables, have entered into strategic agreements with Saudi firms. These partnerships, forged as part of the growing economic cooperation between the two nations, aim to enhance industrial capabilities and boost trade across key sectors.
Citi Pharma’s Joint Venture with Saudi All Care Group:
Citi Pharma Limited, a leading Pakistani pharmaceutical company, has signed a landmark joint venture agreement with Saudi Arabia’s All Care Group of Investment to establish an advanced Active Pharmaceutical Ingredient (API) and formulation facility in Saudi Arabia. This collaboration marks a major step forward in pharmaceutical manufacturing for the region, targeting healthcare needs across the Middle East and North Africa (MENA), which has a population exceeding 500 million.
According to Citi Pharma’s notice to the Pakistan Stock Exchange (PSX), the venture will ensure technology transfer from Pakistan, aligning the production with international Good Manufacturing Practices (GMP) standards. While Citi Pharma oversees the technology and operational aspects, All Care Group will handle land acquisition, infrastructure development, and product registration with Saudi authorities. Financing will be secured through local Saudi banking institutions.
The facility is expected to serve as a strategic export hub, targeting the MENA region and expanding into South Africa and other global markets. The partnership also presents a key opportunity for Citi Pharma to reduce reliance on imported chemicals such as Naphtha cracker chemicals, Phenol, and Benzene, by enabling local production at significantly lower costs.
Rizwan Ahmad, CEO of Citi Pharma, emphasized the transformative nature of the collaboration: “This partnership accelerates our growth, enabling expansion into new markets and driving substantial financial gains. It positions us as a significant player in the global pharmaceutical landscape.”
Pakistan Cables Partners with Saudi Bahra Electric
In another major development, Pakistan Cables Limited signed a Memorandum of Understanding (MoU) with Saudi Arabia’s Bahra Electric, a leading manufacturer of cables and electrical products. The MoU aims to enhance cooperation in the industrial and energy sectors by focusing on the development of electrical products, supply chain resilience, and expanding distribution networks between the two countries.
Pakistan Cables highlighted that this partnership is designed to foster long-term strategic collaboration, contributing to industrial development and economic growth in both Pakistan and Saudi Arabia. The move is expected to enhance trade opportunities in the energy sector, particularly as global demand for robust electrical infrastructure increases.
Broader Economic Cooperation Between Pakistan and Saudi Arabia
These agreements come in the wake of a broader commitment between Pakistan and Saudi Arabia to enhance bilateral trade and investment. On Thursday, the two countries signed 27 Memorandums of Understanding (MoUs), valued at $2.2 billion, across a range of sectors including industry, agriculture, IT, energy, health, education, and more.
This wave of collaboration signals a deepening economic partnership between Pakistan and Saudi Arabia, aimed at promoting mutual growth and development across various industries.
As Pakistan continues to strengthen ties with Saudi Arabia, these corporate alliances are poised to drive innovation, boost exports, and solidify Pakistan’s role in the region’s industrial and economic landscape.
