ISLAMABAD: Pakistani information minister Attaullah Tarar said on Friday Islamabad was working closely with Riyadh to make “operational” $2.8 billion in investment deals signed last month, saying Prime Minister Shehbaz Sharif had discussed the investments with Saudi Crown Prince Mohammed bin Salman during a recent visit to Riyadh.
Saudi Minister for Investment Khalid bin Abdulaziz Al-Falih said on Wednesday 27 agreements and memorandums of understanding (MoUs) worth $2.2 billion that had been signed between Saudi and Pakistani businesses in October had been enhanced to $2.8 billion. The business-to-business deals, now enhanced to 34, were signed on Oct. 10 during Al-Falih’s visit to Islamabad with a delegation of top investors and entrepreneurs from the Kingdom.
“The [Pakistani] prime minister met the Saudi crown prince in a great atmosphere,” Tarar told reporters. “And so more agreements have been signed and we discussed taking them forward, making them operational, work has already started on five [agreements].
“Talks on that also happened and we reaffirmed the commitment that we will enhance Saudi-Pakistan ties and expand investment and trade.”
Tarar said the $600 million additional investment from Riyadh was a “big step” and involved sectors such as energy, minerals, trade, livestock, human resource and IT.
Speaking about Sharif’s visit to Doha after Riyadh, Tarar said Qatar would invest $3 billion in Pakistan:
“In Qatar, [Prime Minister Shehbaz Sharif] has met a business delegation as well as the Qatari PM and emir of Qatar. Agreement has been made in expanding economic cooperation and relations in the field of culture. Discussions happened to further investment and trade also. I think this $3 billion investment will really boost Pakistan’s economy.”
Sharif’s visits to Doha and Riyadh took place at a time when Islamabad is seeking to strengthen trade and investment ties with friendly nations. Riyadh in particular has promised a $5 billion investment package that cash-strapped Pakistan desperately needs to shore up its dwindling foreign reserves and fight a chronic balance of payment crisis.
In 2022, the Qatar Investment Authority said it aimed to invest $3 billion in Pakistan. Doha has also shown interest in airport management partnership and the Roosevelt Hotel in New York’s Manhattan owned by the Pakistan International Airlines.
During a visit to Qatar in 2022, Sharif, then in his first term as PM, invited QIA, Qatar’s $450 billion sovereign wealth fund, to invest in Pakistan’s energy and aviation sectors. He had previously mentioned renewable energy, food security, industrial and infrastructure development, tourism and hospitality, among sectors of interest.
