Saudi Arabia to invest $1 billion in Pakistan, following UAE and Qatar
Pakistan is seeking help from the Gulf amid its foreign currency reserves crisis.
Saudi Arabia has announced plans for a major investment in Pakistan.
Saudi King Salman bin Abdul-Aziz Al Saud issued a directive today to invest $1 billion in the Pakistani economy. The move followed a phone call between the Saudi and Pakistani foreign ministers, the official Saudi Press Agency reported.
Why it matters: The agency did not mention specifics of the investment. However, the South Asian country is facing a major economic crisis. Specifically, Pakistan’s foreign currency reserves have fallen dramatically, which is leading to difficulties paying for imports.
Pakistan is therefore seeking cash from its wealthy allies in the Gulf and has had some success so far. Yesterday, Qatar announced plans to invest $3 billion in Pakistan’s commercial and investment sectors. Earlier this month, the United Arab Emirates said it would invest $1 billion in Pakistani companies in the gas, logistics, finance and other sectors.
