The Prime Minister of Pakistan has secured $13 billion of inward investment from some of the largest economies in the world. According to recent reports, Saudi Arabia, the UAE, and Qatar have finalised new investments in Pakistan.
The Saudi Crown Prince Mohammed bin Salman has instructed the authorities to finalise investments in Pakistan to $10 billion, including increasing its deposits in the Pakistan central bank to $5 billion. Saudi Arabia has also shown strong interest in Pakistan’s refining and industry, intending to build projects in these areas.
With the aim of strengthening economic relations between the two countries and widening the scope of investments, the United Arab Emirates has finalised investments of $3 billion in Pakistan. The announcement came after PM Shehbaz Sharif visited the UAE President Sheikh Mohamed bin Zayed Al Nahyan in the capital Abu Dhabi. Both leaders agreed to increase investment cooperation, encourage partnerships, and enable investment integration opportunities between the two countries.
In a series of similar events, the Qatar Investment Authority is also finalising investments of $3 billion in various commercial and investment sectors in Pakistan. The Qatari government has shown keen interest in airports, seaport terminals, LNG-fired power plants, solar energy, and shares in the real estate and stock markets. The Emir of Qatar emphasised the significance of the brotherly and strategic ties that exist between the two nations and their willingness to strengthen their economic partnership through increased trade and investments.
In addition to the investments, over $10 billion has been pledged through bilateral and multilateral donors and financial institutions toward Pakistan’s flood crisis, which will seep into the country over the next 12-24 months.
The phenomena of high oil prices and a strong dollar have created balance of payments issues across emerging markets, including Bangladesh, Egypt, Argentina, Malaysia, Pakistan, South Africa, and Thailand. However, Pakistan is ready to receive investments of up to $16 billion, making it the most successful inward investment campaign in recent years. In addition to this, the $10 billion secured for flood relief will bring the total dollar inflow to $26 billion over the coming 24 months, significantly reducing the dollar crunch Pakistan and many other emerging economies have been experiencing.