2 October 2022

NEWSCOPE

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Saudi Arabia promises $1 billion to Pakistan to bail out its economic collapse

This announcement about new investment comes just days after the State Bank of Pakistan announced $4 billion in financing from friendly countries for Pakistan

Ankur Chatterjee: Saudi Arabia has announced a $1 billion investment in Pakistan, which is currently experiencing economic and political destabilisation. This development occurred during a phone call between Saudi Foreign Minister Prince Faisal bin Farhan bin Abdullah and his Pakistani counterpart Bilawal Bhutto Zardari, during which he informed him of the Saudi King’s directive while also discussing Saudi-Pakistani relations, regional and international issues.

“The Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, issued a directive to invest USD 1 billion in Pakistan, in confirmation of the Kingdom’s support of the Pakistani economy and the Pakistani people,” Saudi Press Agency (SPA) told on Thursday.

Pakistan’s foreign minister praised the kingdom’s $1 billion investment in the country.

“Pleased to have a conversation with HH FM Faisal bin Farhan. Recalling fraternal bilateral ties, welcomed KSA commitment of USD 1 billion investment. in Pakistan. Briefed my counterpart on damages caused by unprecedented floods, highly value solidarity expressed and KSAs all possible assistance,” in a tweet Bilawal Bhutto said.

This announcement about new investment comes just days after the State Bank of Pakistan announced $4 billion in financing from friendly countries for Pakistan.

“Pakistan will get USD 2 billion from Qatar, USD 1 billion from Saudi Arabia under the umbrella of deferred oil facility and USD 1 billion investments from the UAE in various sectors,” Acting Governor of the State Bank of Pakistan Murtaza Syed was quoted as saying by Dawn.

In the face of gross financial needs of around $30 billion for FY23, Syed estimates available financing at $37 billion for FY23. A report said, the amount increased after Pakistan secured $4 billion in financing from friendly countries.

Pakistan’s economy is once again on the verge of collapse, and the country’s new coalition government has turned to the kingdom for support. The $1 billion investment follows visits by Pakistan’s newly elected Prime Minister Shehbaz Sharif and Chief of Army Staff Qamar Javed Bajwa.

According to Uzair Younus, writing for the Washington-based think tank Atlantic Council, Pakistan’s recurring economic crises have made it more embarrassing for its leaders to seek Saudi money, as both the Saudis and Pakistanis are aware that Islamabad’s value proposition has been declining.

“But this need not be the case–Pakistan is the only country in the world that can solve the House of Saud’s growing security concerns in an increasingly hostile regional environment,” he added.

Also read: Anubrata Mondal seeks CBI probe on the threat letter to the judge, while the court sends him to 14 days  jail custody https://newscope.in/?p=9858

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