Saudi Arabia Would Invest $1 Billion In Pakistan's Cash-Strapped Economy

Pakistan's economy is again on the verge of collapse, and the new labor government has turned to the Saudi monarchy for assistance. 

Saudi Arabia has proposed a $1 billion investment in Pakistan, which is currently experiencing economic and political instability.

This development occurred during a phone call between Saudi Foreign Minister Prince Faisal bin Farhan bin Abdullah and Pakistani counterpart Bilawal Bhutto Zardari, during which he notified him of the Saudi King's guidelines. While also addressing Saudi-Pakistani relations and regional and worldwide issues.

The Saudi Press Agency (SPA) reported on Thursday that "King Salman bin Abdulaziz Al Saud, Keeper of the Two Holy Mosques, gave a command to invest USD 1 billion in Pakistan, confirming the Kingdom's support for the Pakistani economy and its people."

Pakistan's foreign minister has welcomed an investment of $1 billion. 

"I was delighted to speak with HH FM Faisal bin Farhan. Recalling brotherly bilateral relations, he appreciated KSA's willingness to spend USD 1 billion in Pakistan. I briefed my colleague on the devastation caused by historic floods, and I strongly respect the solidarity displayed and the KSAs' willingness to assist in any way possible. "In a tweet, Bilawal Bhutto stated.

This disclosure of new investment comes only days after the State Bank of Pakistan announced $4 billion in funding from friendly nations for Pakistan.

"Pakistan would get USD 2 billion from Qatar, USD 1 billion from Saudi Arabia through the delayed oil facility, and USD 1 billion from the UAE in different sectors," State Bank of Pakistan Deputy Governor Murtaza Syed told Dawn.

In the context of gross finance needs of roughly $30 billion for FY23, Syed estimates available funding of around $37 billion for FY23. According to the article, the sum grew when Pakistan got $4 billion in finance from friendly countries.

Pakistan's economy is again on the edge of collapse, and the country's new governing party has turned to the kingdom for assistance. The $1 billion investment follows visits by Pakistan's newly appointed Prime Minister Shehbaz Sharif and Army Chief of Staff Qamar Javed Bajwa.

According to Uzair Younus, writing for the Washington-based think tank Atlantic Council, Pakistan's periodic economic difficulties have been made. It was more uncomfortable for its leaders to seek Saudi money since both the Saudis and Pakistanis knew that Islamabad's value offer had been deteriorating. 

However, this does not have to be the case—Pakistan is the only country in the world capable of addressing the House of Saud's mounting security worries in a more hostile regional context," he continued.