Saudi Arabia’s Over $2 Billions Investment in Pakistan

ISLAMABAD – Pakistan’s freign exchange inflowed thanks to Saudi Arabia who deposited $2 billion into their reserve at the start of March. Pakistan’s Finance Minister Ishaq Dar has endorsed the deposit while expressing his “deep gratitude” to the organized leadership and brotherly people of that Kingdom during the time of economic crisis in Pakistan.
He went on to say that the Saudi Investment delegation will hold several business-bussiness meetings in order to polish some of the investment proposals that could be more than 2 billion US dollars.

Sectors

There are certain areas where Saudi Arabia and Pakistan are collaborating to execute the plan of improving investments in all of them. One such investment areazzz is mining while the most beneficial is the Rico Dick coal and gold project in Balochistan. The project will be of mutual benefit to both countries and at the same time it will enhance the shoring capabilities of Pakistan. The project will also enhance the economy through offering job opportunities and improving skills.

The investment delegation will be meeting with the government agencies as well as the private sector representatives. The main purpose of the visit of the delegations is to explore the projects and opportunities that can expand the amount of trade between the two countries. They will also talk about the Public Investment Fund’s influence on the increasing volume of investments. Public Investment Fund is an organization which is formed of the KSA Government institutions who target the private sector for business opportunities.

He said two countries have a long history of working together and urged greater collaboration in the sectors of mining, agriculture, information technology, livestock, and manpower. He said the Kingdom was ready to quickly implement a $5 billion investment package that Mr. Shahbaz Sharif had promised during his last encounter with the Crown Prince in Makkah.

We delegate for the hajj oath of allegiance, and so become hajji swearing fealty to another then Deputy Prime Minister Ishaq Dar articulated a business forum together with the Saudi industry delegation and met representatives from the private sector too. He expressed appreciation to the Saudi government for its countries that stand firm in the headwinds of the their for Pakistan Government in averting the IMF bail out. I am confident that the MoUs would be converted into agreements in the course of very arduous and unstinting efforts.

They have begun the signing of moUs.

The high level Saudi delegation arriving in Islamabad on Monday was led by the Minister for Investment Khalid bin Abdulaziz Al-Falih , the Saudi investment was of the amount of 2000 million US dollars . Khalid was received in Islamabad by Energy Minister Musadik Malik, Commerce Minister Jam Kamal Khan and Privatisation Minister Abdul Aleem. They emphasized discussion of broad spectrum of sectors and potential investment opportunities in such areas as information technology, agriculture, mining, infrastructure and many industrial and energy projects.

Furthermore, the delegates paid a visit to the Special Investment Facilitation Council (SIFC) of Pakistan whose mandate is to enhance foreign investment in the country. They held discussions with SIFC Chairman Yvgeny Zubair and were briefed by the Pakistani party on issues such as agribusiness, food processing, water management, energy, and mining among others regarding investment opportunities in the economy.

Earlier this week, Prime Minister Shehbaz Sharif met the Saudi Crown Prince Mohammed bin Salman in Makkah al Mukarramah for the purpose of improving economic relations between both countries. This stems from the recent Comments by Crown Prince of Saudi Arabia, Mohammed Bin Salman where he announced he’s eager to put together $5 billion package for Pakistan’s economy.

Ishaq Dar does bear a high appreciation for Saudi Arabia for “steadfast support” during the financial difficulties Pakistan has endured and entirely sees the two nations firming their strategic partnerships further. He emphasized the need to build on the existing dynamics of bilateral relations to achieve the objective of the creation of stronger and more prosperous states.

Meetings

After many sectors of the Saudi economy have experienced a free fall, the government has begun seeking investment from Saudi Arabia in numerous mining and mineral exploration industries in Pakistan which as a consequence have made the country’s FX reserves to record significant growth. The government has also established the Securities and Investment Finance Corporation with a view to making the country more investment friendly.

Filed evidence has shown that by the year 2027 Saudi Investments are likely to be more than 5 billion dollars. The ministry is devising modalities for thirty investment agreements asserting that these projects would be of mutual benefit between the two countries.

This new perspective quickens the need to expand Pakistan’s parameters for many sectors through investments by the private sector in Riyadh. This new perspective also calls for some level of responsibility by both the private and public sectors of the country in meeting the needs of investors who are transacting on international markets.

The Saudi delegation is aiming to increase the investments between countries and expect to sign 2 billion dollars worth of deals across different areas. Khaled Abdulaziz Al-Falih, the Investment Minister, leads the Saudi investment boot, which is composed of130 representatives from the private and public sectors. The team intends to travel to Pakistan, for instance, Islamabad and Karachi, and have meetings with Pakistani authorities as well.

Shehbaz Sharif

ISLAMABAD – For his part, Pakistani Finance Minister Ishaq Dar suggested this was a timely cash injection from Riyadh as it would lighten the burden in anticipation of the much needed IMF deal which is said would come on the 3rd of April following a long period. He went on to say that on the preceding day both Arabian nationals and the economy of Pakistan will be exceedingly grateful to have these funds. Thank you very much for such a kind favor and optimism to the government and its people of Saudi Arabia,” Dar said.

This time, the delegation argued that it would be interested in cooperating with the government at the level of development of the manufacturing sector, particularly small and medium enterprises so that exports could be increased. It said that, there is plans to invest in the Diamer Basha dam project which is expected to be among the biggest dam irrigation construction projects globally.

Dar further noted that, the Saudi Minister of Investment will close business to business investments that could go up to more than 2 billion dollars. The two sides also discussed measures aimed at ensuring social and economic stability as well as assuring investors of their safety, as noted in a prime minister’s statement. The PM thanked the UAE for accommodating 1.8m Pakistanis and reiterated his determination to ensure the domestically ‘meaningful implementation of investment cooperation agreements in the areas of energy, ports operations projects, treatment of waste waters, food security, logistics, minerals, banking and financial services’. He also invited the president of the UAE to Pakistan, a proposal that was accepted.