Islamabad has received a hefty investment pledge of $20 billion from Saudi Arabia, which seeks to even further expand its contributions to the economically-embattled country.
Saudi Arabia and Pakistan have signed $20 billion of investment-worth memorandums of understanding on Sunday, when Saudi Crown Prince Mohammed bin Salman arrived in Islamabad.
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As the broad investments were expected, Pakistan did its best to greet the high-profile guest, plastering the capital city with large welcoming banners and photos of MBS and Pakistani PM Imran Khan. The investments are related to the country’s agriculture and energy sectors, including a $10 billion-worth project of an oil refinery in the southwest of Pakistan.
The Saudi investments are not limited to the hefty sum of $20 billion and the country should expect more of them, MBS hinted while speaking in Islamabad alongside Khan.
“It’s big for phase one, and definitely it will grow every month and every year, and it will be beneficial to both countries,” said the crown prince. “We have been a brotherly country, a friendly country to Pakistan. We’ve walked together in tough and good times, and we [will] continue.”
Bin Salman’s optimism was shared by the Pakistani PM, who lauded their joint efforts of creating “a great future” for the two countries.
“Saudi Arabia has always been a friend in need, which is why we value it so much,” said Khan, while seated next to the prince. “I want to thank you for the way you helped us when we were in a bad situation.”
The situation for Pakistan is not very bright indeed as the cash-strapped country has had a deficit budget for nearly a decade. Recently, Islamabad has been struggling to reach a new bailout deal with the International Monetary Fund (IMF). When – and if – the negotiations succeed, it would become the 13th IMF bailout the country has received since the 1980s. As negotiations with the IMF have been dragging for months already, Saudi Arabia has already come to the rescue, giving Pakistan a $6 billion loan to replenish the dwindling foreign exchange reserves.
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