Pakistan denies $5 billion Qatari investment diverted to Bangladesh

Prime Minister Imran Khan (standing left) witnesses the signing of the memorandum of understanding (MoU) on LNG between Pakistan and Qatar on February 26, 2021 : (PID)

• During a 2019 visit, Qatar’s sovereign wealth fund expressed interest to invest in two Pakistani power plants and three airports
• While no tangible progress has been seen on the projects, Qatar last month signed a major deal with Bangladeshi conglomerate Unique Group 

KARACHI: Pakistani officials say they are still pursuing $5 billion in Qatari investment after speculation emerged last month that the commitment was diverted by the Gulf state to Bangladesh.
In 2019, a delegation from Qatar’s sovereign wealth fund, the Qatar Investment Authority (QIA), headed by Sheikh Faisal bin Thani Al-Thani, visited Pakistan to explore investment opportunities and expressed interest in various sectors, including energy, tourism and airport management.
According to Haroon Sharif, former chairman of Pakistan’s Board of Investment, the QIA’s first bid was two regasified liquefied natural gas (RLNG) power plants worth an estimated $3 billion to $4 billion. The second bid was for upgrading three Pakistani airports, worth between $1 billion and $2 billion, but the project would require changes to the aviation ministry’s structure for Qataris to become airport shareholders. Another area of investment was the hospitality sector.
Despite framework agreements, however, no tangible progress has been seen on the projects since the 2019 visit. As reports emerged last month of a major Qatari deal with Bangladesh, speculation arose that the Qatari investments planned in Pakistan had been diverted there.
In late April, Nebras Power, a Qatari power development and investment company headed by Al-Thani, announced it had signed a sale and purchase agreement (SPA) with Unique Hotel and Resorts Limited (UHRL) — a sister company of Bangladeshi diversified conglomerate Unique Group — and investment bank Strategic Finance Limited (SFL) to acquire a 24 percent equity stake in Unique Group’s power plant project, Unique Meghnaghat Power Limited (UMPL) located south of Dhaka.
While Pakistani media suggested that the Qatari-Bangladeshi deal meant Pakistan had lost the planned investment, officials say the conclusion is a “misconception.”
“Qatar is still interested to invest in projects that fall under energy, aviation and privatization ministries including RLNG power plants, airport upgradation and hotel management,” Aliya Hamza Malik, Parliamentary Secretary for Textile, Commerce, Industries and Production, and Board of Investment, told Arab News on Saturday.
“This is misconception that investment commitments have been diverted to another country, even Bangladesh,” she said. “Pakistan is still pursuing with Qatar for the committed investment.”
Malik added that three memoranda of understanding were signed by Qatar with different Pakistani ministries for the planned investment.
“I have checked with all the ministries if they got shifted to other country, not even to Bangladesh, and the response was that privatization commission and foreign office are continuously perusing with Qatar the investment matters.”
Sharif, however, was less optimistic.
“If the ministers do not make the project as their priority, things would not move forward,” he said. “Investors have many markets opened before them and they can’t continue waiting for you for longer period.”