Saudi Arabia commits $25 billion investment in Pakistan’s key sectors: Kakar

In a significant boost to Pakistan’s economic recovery efforts, Saudi Arabia has pledged an impressive investment of up to $25 billion over the next two to five years in various sectors, according to caretaker Prime Minister Anwaarul Haq Kakar. This substantial investment is set to cover critical domains such as mining, agriculture, and information technology, underlining a shared commitment to increasing foreign direct investment in Pakistan.

The announcement comes as Pakistan navigates its path to economic stability under a caretaker government following the approval of a $3 billion loan program by the International Monetary Fund (IMF) in July, which averted a sovereign debt default.

While specific project details were not disclosed, the potential investments represent the largest-ever commitment from Saudi Arabia to Pakistan, cementing the strong alliance between the two nations. Pakistan, a longtime ally of Riyadh, is grappling with a balance of payments crisis and requires substantial foreign exchange to address its trade deficit and meet international debt obligations during the current fiscal year.

Prime Minister Kakar’s statement did not pinpoint the exact projects that Riyadh is considering for investment. However, last month, Barrick Gold Corp expressed openness to involving Saudi Arabia’s wealth fund as a partner in Pakistan’s Reko Diq gold and copper mine.

Pakistan boasts untapped mineral deposits conservatively valued at approximately $6 trillion, as noted by Prime Minister Kakar. His caretaker government was initially established to oversee national elections scheduled for November, but there is an expectation that the elections may be delayed by several months.

Efforts to attract substantial foreign investments and diversify Pakistan’s economy with a focus on key sectors like mining, agriculture, and information technology are poised to play a pivotal role in the nation’s economic recovery and long-term growth.