ISLAMABAD: Kingdom of Saudi Arabia is making an investment of $1 billion in Pakistan to support economic development in the country.
According to Saudi media, King of Saudi Arabia, Salman bin Abdulaziz had given the directive for the kingdom to support the Pakistani economy with $1 billion investment.
Saudi Arabia’s Foreign Minister Prince Faisal bin Farhan informed his Pakistani counterpart, Bilawal Bhutto-Zardari, of the decision during a phone call on Thursday evening.
“King Salman bin Abdulaziz ordered investing $1 billion in the brotherly country of Pakistan in line with the Kingdom’s stance in support of the country’s economy and its people,” SPA reported.
The foreign ministers also discussed bilateral ties and means to improve them as well as regional and international affairs of mutual interest, the report added.
Pakistan is in economic turmoil and faces a balance of payments crisis, with foreign reserves having dropped as low as $7.8 billion, barely enough for more than a month of imports. It is also contending with a widening current account deficit, weakening rupee currency, and inflation that exceeded 24% in July.
The International Monetary Fund (IMF) had asked Pakistan to bridge a $4 billion financing gap and Pakistan was able to get friendly countries — Saudi Arabia, UAE, and Qatar — to help meet the requirement.
Saudia Arabia will also provide $1 billion in oil financing to the South Asian nation and the UAE will give a similar amount to the country.
While a day earlier, Qatar Investment Authority shared its plan to invest $3 billion in Pakistan, the Qatari ruler’s office said.
