Pakistan and Saudi Arabia: The dawn of a new era
For strategic reasons, countries around the world often
declare their special affection for each other. References are made to
cultural, religious, geopolitical, and other ties, to show why two peoples are
bound together, and leaders make speeches as well as bestow each other with
gifts. Unfortunately, in some cases, despite this declaration, events happen
that cool affections. When sentiments heal, the cooling-off disappears. This
“see-saw” of relationships between countries is difficult for many, especially
investors who need predictability in plans. How can policymakers create greater
stability in relations? How can they make relationships more durable? How can they
broaden and deepen inter-country affection?
Entrepreneurs could provide an answer.
Pakistan and Saudi Arabia
In the case of the Islamic Republic of Pakistan and the
Kingdom of Saudi Arabia, relations have generally been rather steady. The close
and extremely friendly relationship between the two countries is built on
interests. But despite the long and successful history of a “special
relationship,” the core of the Pakistani-Saudi relationship has remained narrow
and need-based. It has focused on geopolitical security, complemented by
expatriate labor and religious tourism in the form of Umrah and Hajj pilgrims
from one side, and financial aid from the other.
History shows that state relationships are more resilient if
they are built on full potential and add “surplus value.” This means they
harness the full potential in each other’s countries, and turn “1+1” into more
than just two. To accomplish this, multiple elements must do the hard work to
deepen ties. A critical element is commercial bonds that can be developed
between entrepreneurs, businesspeople and other private sector members of both
countries. These bonds should be strengthened in strategic interests wherever
possible.
Between Pakistan and Saudi Arabia, various commissions,
councils, trade bodies, etc. have been created for this purpose but they have
mostly not been successful. The reasons are many, but include efforts that are
not focused on the “bottom line” and depend on the whims of who is in power.
True entrepreneurial thinking was also not brought to the task. In some cases,
well-meaning diplomats and bureaucrats talk about promoting private sector
involvement. But many of these officials are not entrepreneurs. In some cases,
they are even skeptical of the profit motive. At best, they can create enabling
conditions but they cannot drive actual commerce.
Times are changing in both countries. There is a renewed
vigor to revisit the core foundation of the relationship between Pakistan and
Saudi Arabia, and to broaden it. This is exemplified by the upcoming visit of
Crown Prince Mohammed bin Salman to Pakistan, following earlier visits of Prime
Minister Imran Khan to Saudi Arabia. Both leaders have championed
transformative visions for their country’s future under the “Naya Pakistan” and
“Vision 2030” initiatives respectively. The talk between the leaders is now
more about investment than aid; albeit still state-to-state investment, and
one-way. To build on this momentum, it is time to think about “out of the box”
ideas that fully leverage the potential of both our people.
The engagement of entrepreneurs
As noted earlier, much of the interaction between Pakistan
and Saudi Arabia has hovered around security, low cost labor, pilgrims, and
aid. But there is sophisticated professional interaction between Pakistani and
Saudi citizens. This has occurred in the fields of finance, technology,
engineering, consulting and medicine, etc. This professional interaction is
even more common among the younger demographic in both countries, and has happened
between Pakistanis and Saudis, both in the Gulf and in the West – where many of
the next generation have studied. There is untapped potential in this
interaction that needs to be translated into a common framework for
collaboration. It should draw on the outlook of a new generation exposed to
global standards and the highest expectations of excellence.
A more deal-oriented approach is needed that focuses on
opportunities for private sector cooperation between Pakistan and Saudi Arabia
to go along with the official investment activity. A new generation of
entrepreneurs from both sides need to be brought to the table. This includes
men and women with global standing and a world class professional outlook –
most likely those Pakistanis and Saudis who have already studied, traveled or
done business outside their respective home countries.
People that profit together, stay together. One innovative
approach is to “toss” together a generation of Pakistani and Saudi men and
women into a 2-3 day “entrepreneurial hackathon.” Such events are used the
world over to catalyze new ideas. The entrepreneurial hackathon could even be
supported by a venture/start-up capital fund, in the form of a “Pakistan Saudi
Entrepreneurs Fund.” The fund would look for bankable opportunities with a
focus on both impact and return. Such a fund would require Pakistani and Saudi
entrepreneurs to look for partners from the other country to pair up as they
propose ideas. Even the pitching could be part of a “Shark Tank” type of
reality TV show, where investors evaluate pitches, and then invest in the best
ideas. The goal is to establish opportunities for entrepreneurs of both
countries to profit together – in each other’s countries, or even in third
countries. Such an approach harnesses the potential of entrepreneurs to broaden
and deepen stability in relations between both countries. And it also supports
both “Naya Pakistan” and “Vision 2030.”
The upcoming visit of HRH Crown Prince Mohammed bin Salman
should be the dawn of a new era between Pakistan and Saudi Arabia. Through the
rewards of entrepreneurship, we can move our relationship from the limitation
of need to the openness of potential. The time to act has arrived.