Closing Bell: Saudi main index closes in green at 12,025

KARACHI: Pakistan’s government is mulling “very good options” which range from importing crude oil from the United States (US) to abolishing tariffs on American imports, an official privy to the matter said on Wednesday, as Islamabad attempts to offset a trade imbalance that has triggered higher tariffs from Washington.
US President Donald Trump has imposed a 10 percent baseline tariff on all imports to the US and higher duties on dozens of other countries. Pakistan faces a 29 percent tariff due to a trade surplus with the US of about $3.6 billion, although that is subject to the 90-day pause Trump announced last week.
The US is the largest buyer of Pakistan’s textile goods, importing goods worth $5.43 billion last year through June, according to State Bank of Pakistan. In return, cash-strapped Pakistan imported $1.88 billion worth of American goods, resulting in the trade imbalance.
Countries are scrambling to find ways to lower their US tariff burdens, and Pakistan is no different. Pakistan’s Finance Minister Muhammad Aurangzeb said last week Islamabad will send a high-level delegation to Washington to discuss the American tariffs.
“There have been talks of Pakistan potentially importing oil, soya been (oil) and cotton from the US. That’s already it,” an official who spoke to Arab News on condition of anonymity as he was not authorized to speak to media, said.
The finance ministry did not respond to Arab News’ request for a comment till the filing of this report.
The official said the Pakistani delegation will inquire about the expectations of the American government regarding trade, which could include abolishing duties or non-tariff barriers against US products.
“Or they may ask us to buy more cotton from them,” the official said. 
A senior official from Pakistan’s commerce ministry who spoke on condition of anonymity as well, said the discussions were at an “immature stage” and further meetings would be held to finalize them. 
“What decisions are taken, what we offer to them, all options are being examined,” he said. “Everything is on the cards but what is finalized, that cannot be said right now.”
Pakistan spends about $17 billion annually on oil imports, most of which come from the United Arab Emirates and Saudi Arabia. Pakistan is also counted among the largest buyers of cotton, which it uses as raw material for its huge textile industry. Most of Pakistan’s cotton imports come from the US.
As per official data, Pakistan spent more than half a billion dollars ($578 million) last year on the import of 204,890 tons of raw cotton and 119,845 tons of soya bean oil after the local harvest was found to be in poor quality.
In 2023, Pakistan began buying discounted Russian crude oil banned from European markets due to Russia’s war in Ukraine. Muhammad Waqas Ghani, head of research at the Karachi-based JS Global Capital Ltd., said Pakistan faces limitations in diversifying its product slate when it comes to Russian crude oil.
He said this was because Russian crude oil yields a higher output of furnace oil. a less desirable fuel in the country’s evolving energy mix. 
“Importing US crude could offer access to a wider range of crude grades, better aligned with Pakistan’s long-term goal of phasing out furnace oil,” Ghani explained. “This move would also open doors for improved trade terms and potentially pave the way for tariff relief which is our primary objective for now.”
‘OTHER VERY GOOD OPTIONS’
Pakistan’s cotton production has been hit hard by low quality of seeds and climate-induced calamities such as floods caused by excessive rains.
“Apart from that (US oil import) there are other very good options which are being discussed,” the official said. 
However, he confirmed that none of these options had been finalized yet as the delegation would want to meet the American officials and gauge Washington’s expectations.
“Let’s listen to them first,” he said. 
Pakistan’s financial experts and independent think tanks have advised Islamabad to establish trade agreements with emerging economies such as Africa or the Central Asian Republics (CARs) or reinforce existing partnerships with China or the Middle East. 
Financial experts have also called upon the country to use America’s imposition of tariffs as an opportunity and diversity its exports market to other regions to mitigate potential losses.

RIYADH: Saudi Arabia issued 8,357 licenses for private hospitality facilities in 2024, marking a 333 percent year-on-year surge as the Kingdom ramps up efforts to build a globally competitive tourism sector. 

The latest data, released by the Ministry of Tourism, reflects soaring investor interest in the hospitality segment and the government’s push to expand capacity across accommodation types, particularly individually owned, furnished units licensed to serve paying guests, the Saudi Press Agency reported. 

This surge in permits aligns with a nearly fourfold increase in tourism license applications since Saudi Arabia secured the hosting rights for the 2034 FIFA World Cup, according to Vice Minister of Tourism Princess Haifa bint Mohammed Al-Saud, who made the remarks during an event earlier this month. 

As part of Vision 2030, Saudi Arabia aims to draw 150 million annual visitors by the end of the decade and is investing heavily in mega-tourism and hospitality projects such as NEOM, the Red Sea destination, and Diriyah Gate. 

Mohammed Al-Rasasmah, the official spokesman for the Ministry of Tourism, said that “the increasing growth in the number of licenses issued for private tourism hospitality facilities confirms the ministry's keenness to enable individual investors in the hospitality sector to obtain the necessary ministry license to operate, within the framework of the ministry's keenness to ensure the improvement of services provided,” the SPA reported. 

“He pointed out that these efforts come within the framework of the "Our Guests Are a Priority" campaign; which aims to enhance hospitality facilities' commitment to licensing and classification standards, and ensure their compliance with the requirements and requirements set by the Tourism System and its regulations,” it added.  

Earlier this month, the ministry reported an 89 percent increase in licensed hospitality facilities across Saudi Arabia, reaching 4,425 units by the end 2024. The rise reflects mounting demand from domestic and international travelers as the Kingdom accelerates tourism development under Vision 2030. 

Makkah accounted for 1,030 of these licensed facilities — an 80 percent annual jump — making it the leading region for the number of certified accommodations and rooms. The ministry said the uptick supports its commitment to improving the visitor experience, especially for Umrah pilgrims. 

In a post on X at the time, Al-Rasasimah described the surge as “remarkable,” adding that it reflects efforts “to support the sector’s growth and enhance its investment attractiveness.” 

The ministry emphasized that the regulation of private hospitality providers is not only intended to enhance competitiveness but also to protect guest rights and uphold service standards, particularly in high-demand areas like Makkah and Madinah.