Saudi Arabia plans to invest $25 billion in Pakistan over the next two to five years, targeting sectors such as mining, agriculture, and information technology, according to Pakistan’s caretaker Prime Minister Anwaar-ul-Haq Kakar. This investment aims to boost foreign direct investment in the country. The Saudi Arabian government has not yet responded to requests for comment on Kakar’s announcement. If confirmed, this investment would be the largest ever made by Saudi Arabia in Pakistan.
Pakistan, a longtime ally of Saudi Arabia, is currently facing a balance of payments crisis and requires significant foreign exchange to address its trade deficit and repay international debts. While Kakar did not provide specific details on the investment projects, Barrick Gold Corp previously expressed openness to partnering with Saudi Arabia’s wealth fund for the Reko Diq gold and copper mine in Pakistan.
Pakistan holds untapped mineral deposits worth an estimated $6 trillion. Kakar emphasized the need to increase foreign direct investment in the country, stating that this investment from Saudi Arabia would contribute to economic recovery. The caretaker government, scheduled to oversee national elections in November, aims to complete two privatization deals in the power sector within the next six months. Additionally, they plan to privatize another government-owned enterprise outside of the energy sector.
The state-owned enterprises in Pakistan have long been a concern due to their financial struggles. To address this, the government recently added Pakistan International Airlines to the privatization list again. However, the privatization process in the country has largely stalled, as it is considered a politically sensitive issue that elected governments tend to avoid.
Gibran Peshimam reported this news. Aziz El Yaakoubi in Riyadh also contributed to the reporting. The article was edited by William Maclean.
Credit: The Star : News Feed
