Saudi state TV reported on Thursday that Saudi Arabia plans to invest one billion dollars in Pakistan.
State TV added that Saudi King Salman bin Abdulaziz had directed the kingdom to support the Pakistani economy.
According to Al-Arabiya News, Saudi Arabia’s Foreign Minister Prince Faisal Bin Farhan informed his Pakistani counterpart Bilawal Bhutto Zardari about this decision over the phone.
“King Salman bin Abdulaziz ordered an investment of $1 billion in the brotherly country Pakistan in line with the kingdom’s stance in supporting the country’s economy and its people,” SPA reported.
The report added that the Foreign Ministers discussed bilateral relations and ways to improve them as well as regional and international issues of mutual interest.
Pakistan is in economic turmoil and is facing a balance of payments crisis, with foreign reserves dwindling to $7.8 billion, barely enough to cover more than a month’s worth of imports.
It is also contending with a widening current account deficit, weakening rupee, and inflation that exceeded 24 percent in July.
The International Monetary Fund (IMF) had asked Pakistan to bridge the $4 billion financing gap and Pakistan was able to get friendly countries like Saudi Arabia, UAE and Qatar to meet the requirement.
Saudi Arabia will also provide $1 billion in oil financing to the South Asian country, and the United Arab Emirates will give the country a similar amount.
A day earlier, the Qatari Investment Authority shared its plan to invest $3 billion in Pakistan, the office of the Qatari ruler said.
“Qatar Investment Authority has announced its willingness to invest $3 billion in various trade and investment sectors in the Islamic Republic of Pakistan,” Amiri Diwan said, without giving details.
