Saudi Arabia to invest 25 billion dollars in Pakistan in next 5 years
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Islamabad: Pakistan is currently going through a very bad phase. The prices of everything have increased rapidly and inflation is skyrocketing. In the midst of this situation, the acting Prime Minister of Pakistan Anwar-ul-Haq Kakar has made a big claim regarding Saudi Arabia. He has said that Saudi Arabia will invest $25 billion in Pakistan within the next five years. He says that this investment will be made in different sectors of the country. Also, the government will restart the process of privatization.
Investment will be done under FDI
In July, a three billion dollar loan program for Pakistan was approved by the International Monetary Fund (IMF). Thereafter, economic recovery under a caretaker government is being steered on a tightrope. Speaking to reporters at his official residence, Kakar said Saudi Arabia’s investments would be in the mining, agriculture and information technology sectors. This investment will be a part of the efforts being made to increase Foreign Direct Investment (FDI) in Pakistan.
Saudi Arabia did not respond
The Saudi Arabian government has remained silent on Prime Minister Kakar’s statement. According to news agency Reuters, there was no immediate response from the Saudi government on his request. If this investment is confirmed, it will be the biggest investment ever made by Saudi in Pakistan. Saudi Arabia has been a long-time ally of Pakistan. The country is dealing with a balance of payments crisis. Pakistan needs billions of dollars of foreign exchange in the current financial year to pay its trade deficit and international debts.
Investment will be done under FDI
In July, a three billion dollar loan program for Pakistan was approved by the International Monetary Fund (IMF). Thereafter, economic recovery under a caretaker government is being steered on a tightrope. Speaking to reporters at his official residence, Kakar said Saudi Arabia’s investments would be in the mining, agriculture and information technology sectors. This investment will be a part of the efforts being made to increase Foreign Direct Investment (FDI) in Pakistan.
Saudi Arabia did not respond
The Saudi Arabian government has remained silent on Prime Minister Kakar’s statement. According to news agency Reuters, there was no immediate response from the Saudi government on his request. If this investment is confirmed, it will be the biggest investment ever made by Saudi in Pakistan. Saudi Arabia has been a long-time ally of Pakistan. The country is dealing with a balance of payments crisis. Pakistan needs billions of dollars of foreign exchange in the current financial year to pay its trade deficit and international debts.
Where will you invest?
PM Kakar did not specify in which projects Riyadh wanted to invest. But last month Barrick Gold Corp said it was ready to rope in Saudi Arabia’s wealth fund for its participation in Pakistan’s Reko Dick gold and copper mine. Kakar said that the estimated value of Pakistan’s untapped mineral reserves is around $6 billion. The Barrick Reco Dick mine is considered one of the largest undeveloped copper-gold fields in the world. The company owns 50 per cent of the mine, while the remaining 50 per cent is owned by Pakistan and the provincial government of Balochistan.
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