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A $1 billion investment from Saudi Arabia has been made in cash-strapped Pakistan, which is now experiencing both economic and political unrest. The Saudi Foreign Minister Prince Faisal bin Farhan bin Abdullah told his Pakistani counterpart Bilawal Bhutto Zardari of the Saudi King’s instruction during a phone chat, during which they also discussed regional and global concerns as well as Saudi-Pakistani relations.
According to Saudi Press Agency (SPA), on Thursday, “King Salman bin Abdulaziz Al Saud, Custodian of the Two Holy Mosques, issued a decree to invest USD 1 billion in Pakistan, in affirmation of the Kingdom’s support of the Pakistani economy and the Pakistani people.”
The $1 billion investment made by the kingdom in Pakistan was hailed by the Pakistani foreign minister.
“I am happy to speak with HH FM Faisal bin Farhan. Recalling the strong connections between the two countries, Pakistan appreciated the KSA’s pledge to invest $1 billion there. I informed my counterpart of the devastation brought on by the exceptional floods, and I highly value the solidarity shown and the KSA’s offer of all assistance “In a tweet, Bilawal Bhutto stated.
This new investment announcement comes days after the State Bank of Pakistan disclosed $4 billion in financing from friendly nations for Pakistan.
Acting Governor of the State Bank of Pakistan Murtaza Syed was quoted by Dawn as saying that Pakistan would receive USD 2 billion from Qatar, USD 1 billion from Saudi Arabia underneath the umbrella of a delayed oil facility, and USD 1 billion in investments from the UAE in various industries.
Syed stated that the available finance is expected at $37 billion for FY23, against gross financing needs of roughly $30 billion. According to the article, the sum climbed after Pakistan obtained $4 billion in financing from allies.
The new coalition has once more knocked on the kingdom’s door asking for assistance as Pakistan’s economy is once more on the verge of collapse. Following visits by Pakistan’s newly elected prime minister Shehbaz Sharif and its chief of army staff Qamar Javed Bajwa, a $1 billion investment has been made.
In an article for the Washington-based think tank Atlantic Council, Uzair Younus claimed that Pakistan’s ongoing economic problems have made it more embarrassing for its leaders to ask Saudi Arabia for financial assistance because both the Saudis and Pakistanis are aware of Islamabad’s deteriorating value proposition.
But this need not be the case, he continued, as Pakistan is the only nation in the world capable of allaying the House of Saud’s mounting security fears in a hostile regional climate.
