Saudi Arabia has pledged a USD 1 billion investment in Pakistan, which is now experiencing economic and political instability.
Saudi Arabia King Salman bin Abdulaziz directed the country to assist the Pakistani industry. Additionally, Saudi Foreign Minister Prince Faisal bin Farhan notified his Pakistani counterpart, Bilawal Bhutto-Zardari, of choice during a telephone conversation, as per Al-Arabiya News.
"King Salman bin Abdulaziz directed the investment of $1 billion in Pakistan, in keeping with the Region's assistance for the nation's economy and society," the Saudi Press Agency (SPA) stated.
According to the article, the foreign ministers also addressed bilateral cooperation and ways to strengthen them, along with local and global issues of common concern. While remembering the two nations' brotherly bilateral cooperation, the foreign minister commended Saudi Arabia's intention to spend $1 billion on Pakistan.
Bilawal also informed his colleague about the destruction wrought by the catastrophic floods. He expressed gratitude for Saudi Arabia's support and any available aid. Because of the water crisis, Bilawal Bhutto eventually canceled a trip to four European nations.
It is unclear how or when the most recent investment will be made. Saudi Arabia is among the primary nations from whom Pakistan has sought financial assistance. Riyadh has consented to extend a $3 billion loan till the end of the year. The new offer from Saudi Arabia follows Qatar's announcement of a $3 billion investment in Pakistan.
Pakistan is witnessing financial instability and is facing a financial meltdown of payments crisis with foreign reserves as low as $7.8 billion, hardly sufficient for more than a month's supply of purchases. It also has to deal with a growing current account deficit, a falling rupee, and inflation that surpassed 24 percent in July.
The IMF had requested Pakistan to overcome a $4 billion financial deficit, and Pakistan sought allied countries – the Kingdom, the United Arab Emirates, and Qatar — for assistance. Saudi Arabia will also offer $1 billion in petroleum funding to the South Asian country, while the UAE would contribute a comparable sum. According to the Qatari ruler's administration, the Qatar Investment Authority announced a $3 billion investment proposal in Pakistan the day before.