Saudi Arabia’s Wafi Energy Expands Investment in Pakistan’s Energy Sector
Islamabad, February 21, 2025 — Pakistan’s Finance Minister, Muhammad Aurangzeb, met with senior officials from Saudi Arabia’s Wafi Energy Pakistan and Asyad Holdings Group this week, reaffirming the government’s commitment to facilitating foreign investment and fostering a business-friendly environment. The meeting highlights the growing economic ties between Pakistan and Saudi Arabia, particularly in the energy sector, which remains a crucial area of development for both nations.
This high-level engagement marks another step toward strengthening bilateral trade and investment between the two nations, with a focus on energy security, infrastructure, and economic growth.
Wafi Energy’s Strategic Investment in Pakistan
In November 2024, Wafi Energy, a subsidiary of the Asyad Group, made a significant investment in Pakistan’s energy sector by acquiring a majority stake in Shell Pakistan Limited (SPL). The deal saw Wafi Energy securing approximately 87.78% of Shell Pakistan’s total issued share capital, positioning itself as a major player in Pakistan’s downstream petroleum industry.
This landmark acquisition was seen as a vote of confidence in Pakistan’s energy market, particularly at a time when the country has been working to stabilize its economy and attract foreign direct investment (FDI). The acquisition also aligns with Saudi Arabia’s broader Vision 2030, which emphasizes economic diversification and regional investment partnerships.
Industry experts believe that Saudi investments in Pakistan’s energy sector will lead to:
- Improved fuel supply chain efficiencies
- Expansion of retail fuel networks across the country
- Job creation and skills development in the energy sector
- Potential joint ventures in renewable energy projects
High-Level Meeting Highlights Strong Economic Ties
On February 20, 2025, Finance Minister Aurangzeb welcomed a high-profile Saudi delegation to Islamabad, which included:
- Ghassan Al Amoudi, CEO of Asyad Holdings
- Zubair Shaikh, Chairman of Wafi Energy Pakistan Limited
During the meeting, Aurangzeb expressed appreciation for the group’s strategic investments and reaffirmed Pakistan’s dedication to creating a favorable business environment.
“We are committed to facilitating foreign investors and ensuring a business-friendly environment that supports long-term growth and mutual prosperity,” Aurangzeb stated.
He also discussed his recent visit to Saudi Arabia for the AlUla Conference 2025, where he commended Riyadh’s economic diversification efforts and infrastructure development strategies.
Saudi Investors Confident in Pakistan’s Economic Potential
The Saudi delegation expressed optimism about Pakistan’s economic trajectory, emphasizing their plans to expand investment in the country.
“Investor and consumer confidence in Pakistan is returning,” noted the delegation.
Saudi investors are particularly interested in expanding their presence in Pakistan’s downstream petroleum sector, which includes refining, distribution, and fuel retail networks. Additionally, discussions were held regarding potential collaborations in energy infrastructure projects and renewable energy initiatives.
Government’s Commitment to Foreign Investment
Pakistan’s economic policies in recent years have been focused on attracting foreign capital to boost growth and stability. The government has pledged to introduce:
- Streamlined investment policies
- Tax incentives for foreign investors
- Regulatory reforms to improve ease of doing business
- Public-private partnerships in key sectors
Finance Minister Aurangzeb reiterated that the government is dedicated to supporting foreign investors, ensuring that bureaucratic hurdles are minimized.
“Pakistan’s energy sector holds immense potential, and we welcome strategic investments that contribute to the country’s economic revival,” he emphasized.
Special Investment Facilitation Council (SIFC): A Game Changer
Recognizing the need to streamline foreign investments, Pakistan established the Special Investment Facilitation Council (SIFC) in June 2023. The SIFC was created as a one-window solution to attract international capital in key sectors, including:
- Energy and infrastructure
- Agriculture and livestock
- Technology and digital economy
- Real estate and construction
By reducing bureaucratic delays and ensuring policy continuity, the SIFC aims to encourage long-term foreign direct investments (FDI). Saudi Arabia has been a key partner in these initiatives, with several high-profile projects already in discussion.
Pakistan’s Economic Challenges and IMF Assistance
While Pakistan continues to attract foreign investment, it still faces significant economic hurdles. According to Fitch Ratings, Pakistan will need to repay over $22 billion in external debt in fiscal year 2025, with nearly $13 billion tied to bilateral deposits.
The government has been relying on a $7 billion IMF assistance program, which requires:
- Strict fiscal discipline
- Structural economic reforms
- Reduction in trade and current account deficits
- Privatization of state-owned enterprises (SOEs)
Despite these challenges, Pakistan’s leadership remains hopeful that foreign direct investment (FDI), especially from Saudi Arabia, will help revitalize the economy.
The Road Ahead: Strengthening Pakistan-Saudi Ties
Pakistan and Saudi Arabia share strong diplomatic, economic, and strategic ties, and this latest wave of investment signifies a deepening economic partnership.
Experts believe that with continued policy support, Saudi investment in Pakistan’s energy sector could pave the way for:
- Greater energy security
- Economic diversification
- Job creation and industrial development
- Enhanced bilateral trade relations
The Wafi Energy-Shell Pakistan deal is expected to be one of many future Saudi investments, as both nations continue to collaborate on economic and trade partnerships.
Conclusion: A Positive Step Toward Economic Growth
The high-profile meeting between Pakistan’s finance minister and Saudi investors marks a significant milestone in the ongoing economic collaboration between the two nations. With Pakistan’s government actively encouraging FDI, and Saudi Arabia’s strategic investments, the country is poised for stronger economic recovery and sustainable growth.
The energy sector remains a critical pillar in this relationship, with both countries looking to expand cooperation in the downstream petroleum industry, energy infrastructure, and renewable energy projects.
With economic reforms, investor confidence, and growing bilateral ties, Pakistan is well-positioned to capitalize on foreign investments and achieve long-term economic stability.
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