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Saudi money is moving from pledges to a pooled fund in Pakistan, as the two allies try to turn years of investment talk into actual deals.
The Saudi-Pakistan Joint Business Council, set up by both governments, launched a private equity fund with an initial size of several hundred million dollars, it said in a statement on Monday, reported by Reuters. The fund is expected to grow as opportunities come up.
How it works
Saudi and Pakistani investors will put in equal shares. Three-quarters of the money will go to projects in Pakistan and a quarter to projects in Saudi Arabia.
The fund will target agriculture, mining and industry, including construction. It will also look at commercial projects tied to Pakistan's program to open public assets to investors, such as airports, highways and ports, as well as fast-growing private companies.
A management company, which institutions from both countries may own stakes in, will run it. Neither the manager nor the fund's name has been disclosed.
The fund still needs regulators' approval in both countries before it can be structured and make its first investments.
Why it matters
Pakistan has long pitched Saudi investors on big projects, with mixed results. A pooled fund with its own manager gives that money a clearer path to actual deals.
The council's chairman, Prince Mansour bin Mohammad Al Saud, signed preliminary agreements in Karachi's power sector last year, including a majority stake in K-Electric, the city's power utility.
The bigger picture
Economic ties are following security ones. The two countries signed a mutual defence agreement in September 2025, and Pakistan has since pitched a pipeline of about 40 projects worth $28 billion to Saudi investors, according to Arab News.
What to watch
Who is named to manage the fund, how big it is at first close, and which project goes first.
