What if Pakistan purchase oil in riyal currency from Saudi Arabia

[FuturePAF]

No .. Russia does not fit for us. We don't have manpower working in Russia. Neither we have something special to export to Russia . We will face difficulties in increasing rubbles currency for oil trade .


Saudi Arabia fits now . We are exporting many things currently and many our business communities and workers are living there.

Getting Riyal currency for importing oil can be easy for us .

Riyal is more stronger than rubble

Saudi Investment in the agricultural industry and value added derivatives would be a great investment for the Saudis. Increasing the productivity of Pakistani Agriculture will pay off for them as well in many ways. Water and Food security in the era of climate change will make it a commodity people may kill for.

Saudi Investment in water infrastructure (Dams) could also allow them to help stabilize and maximize productivity of their investments. Agriculture employs 60% of Pakistan's labor force, and building dams could prevent a war between India and Pakistan, and should be seen as making Saudi Arabia a regional stabilizing force, which will buy them more and more influence in the region.

In the even of a Flood, water that would have been not only wasted but caused billions of dollars worth of damage, could be saved, it could then be sold to farmers, to earn the Saudis profit on their investment.

 

[niaz]

It would be better for both the Saudis and Pakistan if the Saudis set up manufacturing industries across the Islamic world. Utilizing the cheaper labor, they can employ so many more workers, not have to provide housing, and invest in value added industries without paying for the infrastructure of roads and rails and ports. for example, a car factory in Faisalabad with new modern equipment would be able to employ from amongst the best workers there at the current wage. Pakistan highways and railroads would transport the products throughout the whole country.

the initial investment would be large but it would pay off if Pakistani engineers and technicians produce the best cars. Saudi technical colleges could recruit top talent from a large pool. Pakistan R&D teams could develop product that would work well across Pakistan's various terrains and climates.

Money earned by the Pakistani Government as partner in these projects could allow them to buy Saudi oil and gas. Its win-win-win for the Pak and Saudi Governments and Pakistani workers. Nominal Dollar amounts can be put on paper, but its more of a barter trade in away.

The real benefit to Pakistan comes from the set up of technical colleges and a skilled work force that can set up other ventures privately to develop and sell products to the rest of the world.

Honorable Sir,

Suggest you read the grand project called Saudi Vision 2030, the mastermind of this project is MBS. (Mohammed Bin Salman)


file:///C:/Users/Owner/Downloads/Saudi_Vision2030_EN.pdf

 

[FuturePAF]

Honorable Sir,

Suggest you read the grand project called Saudi Vision 2030, the mastermind of this project is MBS. (Mohammed Bin Salman)


file:///C:/Users/Owner/Downloads/Saudi_Vision2030_EN.pdf

Niaz,

I understand the idea behind Saudi Vision 2030; the Saudis want to diversify and export finished products, such that 50% of exports are non-oil based. While the plan is good (and they should do this to some extent), it doesn't take into account the more economical method of investing in other countries so that you can maximize profits. Many smaller projects throughout the world rather than one big city like NEOM, where a lot of the work will be infrastructure building.

I would say, they should look at the Japanese model of investing abroad, such as in the textile industry in Bangladesh. Japanese investors bring capital, know-how, and contracts to sell to other countries, and sell around the world. The Japanese workers are the top talent managers and middle management supply chain experts.

Hundreds of Saudi SEZ throughout the world, would earn them more than one big city where they will have to bring in labor and ship in raw materials. It would be more profitable to bring their investments to these countries, and in turn modernize these countries through trade, increasing the demand for Saudi oil, and creating a virtuous cycle where Saudi has more customers for their oil.

These nations would then have the development and funds to protect Saudi Arabia, not only because of their dependence on Saudi Oil, but because of their trade ties.

(p.s. you linked to your computer)

 

[Yaseen1]

No .. Russia does not fit for us. We don't have manpower working in Russia. Neither we have something special to export to Russia . We will face difficulties in increasing rubbles currency for oil trade .


Saudi Arabia fits now . We are exporting many things currently and many our business communities and workers are living there.

Getting Riyal currency for importing oil can be easy for us .

Riyal is more stronger than rubble

Saudis future is doubtful and there is high chance in future their oil reserves will go in u.s or israel hands due to civil war like it happened in iraq and lybia whose oil reserves are now under u.s control.Russia is more stable and also central asian states like kazakastan have good reserves of oil.rubel is lower in price than riyal which means russian oil will be cheaper due to lower currency value and china is also buying their oil for gold or local currencies.We can export agricultural products to russia and our current gas pipeline project from russia is also underway ,due to cpec it is expected that oil tankers can be easily transported from russia by road and shipping will become much cheaper as compared to sea.Buying oil from iran is also good option if we are blacklisted by fatf as iran is very close to us and shipping will be very cheap thus reducing oil price and we can barter them with exporting agricultural products

 

[VCheng]

Barter trade; nominally in Dollars, but actually in finished products coming out of Saudi Factories set up in lower wage Islamic nations like Pakistan will secure them stable buyers and strategic partners, even more so then today.

should the currency of trade change in the future it wont hurt these nations as much.

Saudi's need to set up factories for products they themselves need, or that they can sell on to their other allies.

All excellent ideas, but only if you can get Saudis to agree to any or all of them.

 

[nahtanbob]

Pakistan and Saudi Arabia are born to each other's survival . Allah has given that opportunity to us only .

Why should we have fear of getting advantage ?

I could replace pakistan with USA. the entire world would go along

I think it is more feasible for us to buy russian oil for rubels as Saudis cannot sell oil without dollars,they love u.s more than Pakistan and are slaves of israel and u.s.they rely on u.s for security and weapons so we should not expect this from saudis

Russia wants hard currency too

 

[Humble Analyst]

The demand for dollars for imports is causing troubles in external balance of payment .For that we devalue our currency , impose heavy taxes , increase inflation and what not to fight with Dollar.

Of top ten imports of Pakistan, Oil is number one in our import list & is major import from Saudi Arabia.

What if we purchase oil in Saudi riyal currency from Saudi Arabia.?

Right now 26,000,00 Pakistanis are working in Saudi Arabia. They send their hard earned money in riyal currency to our banks.

In return , we will also get Saudi riyal for our exported products in this trade .

If need comes , then IK can request to MBS to accommodate more Pakistani expats in Saudi Arabia. Moreover there lots of Pakistanis working in gulf States so it will not be problematic to increase our riyal reserve.

There are lots of advantages trading in riyal currency with Saudi Arabia.
Will it create breathing room for Pakistani economy ?

There can be big difference between an idea and a wise idea.
The answer is no because KSA will not do it and if Pakistan is wise it will avoid direct hostility with USA.

 

[Baburfromsarmarkand]

We would be better off trying to find our own oil. It's gotta be here somewhere.

 

[Syed1.]

First we need riyals to trade in riyals..... Are our exports to KSA at such a level that we can get enough riyals for our exports that we can use for oil imports?

 

[B.K.N]

First we need riyals to trade in riyals..... Are our exports to KSA at such a level that we can get enough riyals for our exports that we can use for oil imports?

Both are forign currencies what difference does it makes whether Pakistan pays in dollars or riyals

We would be better off trying to find our own oil. It's gotta be here somewhere.

Better option is to cut oil consumption by reducing the number of cars and by taking some other measres

 

[M.Bison]

Both are forign currencies what difference does it makes whether Pakistan pays in dollars or riyals



Better option is to cut oil consumption by reducing the number of cars and by taking some other measres

I thought its not the number of cars but how oil is used to generate electricity.. I could be mistaken. Doesn't Pakistan still use crude oil to generate electricity?

 

[B.K.N]

All excellent ideas, but only if you can get Saudis to agree to any or all of them.

What can Pakistan sell to Saudis? mangoes maybe Pakistan is exporting it's labour to Saudi Arabia and except people Pakistan has got nothing to export

I thought its not the number of cars but how oil is used to generate electricity.. I could be mistaken. Doesn't Pakistan still use crude oil to generate electricity?

But still reducing the number of cars would decrease oil consumption

 

[M.Bison]

What can Pakistan sell to Saudis? mangoes maybe Pakistan is exporting it's labour to Saudi Arabia and except people Pakistan has got nothing to export



But still reducing the number of cars would decrease oil consumption

Yeah but issue is you have give people an alternative.. If you ask people to give up cars then you have to provide them with proper alternative ie Bus, train, maybe subways. You know what I mean? If The government tries to take away cars then you have to give people a decent alternative..

And Pakistan has the potential to be the bread basket to the Middle East and can provide them with halal meat, vegetables and other food stuffs. Agriculture is one thing that Pakistan has the knowledge and manpower for but it is not mechanized or modernized. For that you need government investment. People make fun of the food game but the food game is no joke if done properly.

 

[B.K.N]

Yeah but issue is you have give people an alternative..

Alternatives are already available

And Pakistan has the potential to be the bread basket to the Middle East

That's why I said mangoes because Pakistan has nothing else to export except labour and agricultural products but agricultural products aren't very expensive so Pakistan can't make much dollars from the export of food

 

[Mr ambassador]

First we need riyals to trade in riyals..... Are our exports to KSA at such a level that we can get enough riyals for our exports that we can use for oil imports?

Yes our trade with Saudi Arabia can get enough riyals for balance of payments. There are lots of opportunities for us.

Riyals won't take us to minus as Dollar does.

Alternatives are already available



That's why I said mangoes because Pakistan has nothing else to export except labour and agricultural products but agricultural products aren't very expensive so Pakistan can't make much dollars from the export of food

Pakistan is exporting many things to Saudi Arabia. Cement , plastic, garments , and many things.


Our export can be increased . We have man power and they don't have.