Saudi Arabia announces $1 billion investment in Pakistan

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RIYADH – Saudi Arabia has announced it will invest $1 billion in Pakistan to help the country with its current economic difficulties.

 

The Saudi Foreign Ministry said in a statement on Thursday that King Salman bin Abdulaziz has issued investment orders to help Pakistan’s economy.

Saudi Foreign Minister Faisal bin Farhan later phoned his Pakistani counterpart Bilawal Bhutto Zardari to inform him of the decision, which he then tweeted.

On Wednesday, the Qatar Investment Authority also announced that it would invest $3 billion in various commercial and investment sectors in the South Asian country.

Local media claimed last week that Islamabad has planned to sell two LNG-fired power plants to Qatar, as well as 51 percent shares in the Roosevelt Hotel in New York and Pakistan International Airlines.

“It was decided that Pakistan should offer 10 percent stakes to Qatar in the government-owned listed companies, in line with the similar offer that it has made to the United Arab Emirates,” the daily Express Tribune reported.

IMF meeting

Pakistan is in economic turmoil and faces a balance of payments crisis, with foreign reserves having dropped as low as $7.8 billion, barely enough for more than a month of imports.

It is also contending with a widening current account deficit, weakening rupee currency, and inflation that exceeded 24 percent in July.

An International Monetary Fund meeting next week is expected to approve more than $1 billion in financing that has been stalled since the beginning of the year.

Source: Agencies

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