Pakistan has somehow managed to convince Saudi Arabia to make huge investments in Pakistan for engaging it financially in the cash-deprived economy of the country on a permanent basis, as informed by the officials on Tuesday.
Senior officials while talking to The Nation revealed that besides the regular economic packages, Saudi Arabi was requested to make investment in Pakistan as part of the commitment of government which is of “trade not aid”.
One official said that at this time, the country needs money, however, this phase is temporary. He added that there is a need to move on, to get out of the economic crisis. He further said that investments from friendly nations would permanently keep them engaged in Pakistan.
Another official said that the Saudi Crown Prince Mohammed Bin Salman would be bringing in huge investments to Pakistan besides the economic packages that were already announced by Riyadh.
The official said that nearly $20billion investment is anticipated from Saudi Arabia. This would for sure be giving a boost to the economy. He added that it is needed that the Kingdom of Saudi Arabia and others enhance their business presence in Pakistan.
As per the reports, Pakistan and the Kingdom had agreed to get oil on loan. Saudi Arabia would be providing oil worth $3billion to Pakistan for 3 years.
The media and medical teams of Prince Mohmmed Bin Salman are already in Islamabad before his 2-day visit to Pakistan, which is anticipated to happen on the 16th of February.
In the last report of the Institute of International Finance it claimed that a potential IMF programme for Pakistan could be calculated at $15billion. Asad Umar initially said that IMF would be asked for a bailout package of $12billion while another $5billion would be looked for from the Asian Development Bank and the World Bank.
However, with the financial support of Saudi Arabia and the United Arab Emirates, the IMF loan might be reduced.
PM Imran Khan said that the focus of the government is on encouraging investments, incentivizing the expatriates, checking money-laundering, and increasing exports.
Pakistan would also be receiving $1.5billion in trade finance from the Jeddah-based financing arm of the Islamic Development Bank—the International Islamic Trade Finance Corporation.
Nearly 65 percent of the supposed investment by the Kingdom is expected to be announced during the Mohammed Bin Salman’s visit.