Islamabad, 5 September 2023 (TDI): In a significant development, Saudi Arabia has announced plans to invest up to $25 billion in Pakistan over the next two to five years.
Pakistan’s caretaker Prime Minister, Anwaar-ul-Haq Kakar confirmed this major investment. This substantial investment underscores the vital role of increasing foreign direct investment (FDI) in Pakistan’s economic growth.
Speaking to journalists at his official residence, Kakar said that the Saudi investment would come in the mining, agriculture, and information technology sectors. Moreover, it was a part of the push to increase foreign direct investment (FDI) in the country.
“I can confirm it,” Kakar said in response to a question about whether Pakistan would receive investments of $25 billion each from the Kingdom and the UAE under the Special Investment Facilitation Council (SIFC).
This substantial investment arrives at a critical juncture as Pakistan seeks to navigate a challenging path towards economic recovery. It aims to bolster foreign direct investment (FDI), a crucial component of Pakistan’s economic resurgence.
This initiative follows the approval of a $3 billion loan program by the International Monetary Fund (IMF) in July, which effectively prevented a looming sovereign debt default.
One potential area of collaboration between Pakistan and Saudi Arabia could be the Reko Diq gold and copper mine, regarded as one of the world’s largest underdeveloped copper-gold regions.
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With Pakistan’s mineral deposits conservatively valued at around $6 trillion, this partnership holds immense economic potential.
Furthermore, the caretaker government in Pakistan has expressed its determination to rejuvenate the stalled privatization initiatives, particularly in the power sector.
The challenges posed by state-owned enterprises, which have strained Pakistan’s finances, are a central focus of the country’s economic recovery strategy.
