Saudi Arabia has announced its plan to invest $25 billion in Pakistan over the next five years, Reuters reported. Pakistan’s Caretaker Prime Minister Anwaarul Haq Kakar revealed this significant investment during a press conference held at his official residence. The investment will be allocated across various sectors, including mining, agriculture, and information technology, with the aim of boosting foreign direct investment in Pakistan.
In addition, the investment comes at a crucial time for Pakistan, as the country is striving to recover from an economic crisis and avoid a sovereign debt default. In July, Pakistan secured a $3 billion loan program from the International Monetary Fund (IMF) to address its balance of payments issues. The investment from Saudi Arabia will provide much-needed support in financing Pakistan’s trade deficit and meeting its international debt obligations.
During the press conference, specific details regarding the investment projects were not disclosed. However, it is believed that the funds could potentially be directed towards various initiatives. One such initiative could be the development of the Reko Diq gold and copper mine. Pakistan’s mineral deposits, estimated to be worth around $6 trillion, present significant potential for economic growth and development.
Read more: Saudi King directs government to invest $1 bln in Pakistan
Reviving privatization
In addition to the investment announcement, Prime Minister Kakar emphasized his government’s commitment to reviving the privatization process. The government aims to complete two deals within the next six months. These deals could potentially involve state-run power sector entities.
The privatization of state-owned enterprises has been a long-standing challenge in Pakistan. However, the government is determined to address this issue. Their objective is to alleviate financial stress through the privatization process.
Significant milestone
Furthermore, the investment from Saudi Arabia marks a significant milestone in the bilateral relations between the two countries. Pakistan, a longstanding ally of Saudi Arabia, appreciates the support as it navigates its economic challenges and works towards sustainable growth. The infusion of foreign investment is expected to have several positive impacts. It will create job opportunities, enhance infrastructure, and contribute to the overall development of Pakistan’s economy.
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