Al-Jomaih dispute threatens business ties with Saudi Arabia: ex-minister 

KARACHI: Former Minister for Investment Muhammad Azfar Ahsan has urged the government of Pakistan to act immediately to resolve the protracted issues facing Saudi investors, particularly the Al-Jomaih Group’s stake in K-Electric, warning that Pakistan’s global investment credibility is at stake.

Azfar’s statement follows reports of a meeting between Saudi Assistant Minister of Investment Eng. Ibrahim Al-Mubarak and Pakistan’s ambassador in Riyadh, Ahmed Farooq, where senior Saudi officials expressed frustration over Islamabad’s failure to address governance and shareholding challenges in K-Electric, despite repeated assurances from the Prime Minister’s Office.

“Saudi investors have shown patience for years, but that patience is wearing thin,” Azfar said. He noted that Al-Jomaih, a respected, long-term investor that entered Pakistan in 2005, has not received a single dollar in repatriated profits in nearly 20 years.

He emphasized that Al-Jomaih and its partners have invested over USD 4 billion to overhaul Karachi’s power infrastructure but continue to face bureaucratic delays, policy uncertainty, and regulatory gridlock.

“This is not just about one investment—it’s about the message we send globally,” Azfar warned. “If we maintain the status quo, we risk sending a red signal to international investors. A fair and swift resolution here will signal that Pakistan is truly open for business.”

Azfar also highlighted that while Saudi Arabia remains committed to investing up to USD 10 billion in Pakistan, momentum has slowed since early 2024, with no concrete progress on the USD 2.8 billion in deals discussed during the Saudi delegation’s visit.

“Despite numerous meetings and statements, nothing has moved,” he said. “The Al-Jomaih issue is now a test case for Pakistan’s seriousness. If we can’t resolve matters with a key partner like Saudi Arabia, how can we expect to attract other investors?”

Calling the matter urgent, Azfar concluded: “The world is watching. We need to restore confidence not in months, but in days and hours.”