ISLAMABAD: Days after Pakistan Prime Minister Shehbaz Sharif met Saudi Arabia's Crown Prince Mohammed bin Salman, the two countries have agreed to increase Saudi deposits in Pakistan's Central Bank from US$3 billion to US$5 billion. , a media report said on Wednesday.
Sharif was on an official visit to Saudi Arabia from 6 to 8 April and a joint statement after the conclusion of his visit stressed, among other issues, Pakistan's cash-strapped economy and the Gulf kingdom's supportive role in mutual relations. Desire to strengthen trade and investment ties.
"Both sides reaffirmed their commitment to accelerate the first wave of the US$5 billion investment package previously discussed," the statement said.
The proposed Saudi investment comes as Pakistan is facing a serious economic crisis with high inflation rates and shortage of foreign exchange.Incidentally, the quantum of the proposed increase in deposits by Saudi Arabia in the Central Bank of Pakistan is equal to or greater than the additional arrangement of US$3 billion approved by the International Monetary Fund in July last year.
"In addition to increasing Saudi deposits in Pakistan's central bank, the agreement includes investments in a new oil refinery and copper mines," The News International quoted Mohammed al-Qahtani, CEO of Saudi Arabia Holding Company, as saying in a post.
The newspaper said the moves are part of a broader earlier agreement, where Saudi Arabia is in talks to invest US$21 billion in Pakistan, including setting up a US$7 billion copper mine and a US$14 billion investment in Pakistan. Includes establishment of oil refinery. ,
The report said that these investments are seen as a positive step towards strengthening economic ties between Pakistan and Saudi Arabia, supporting the Pakistani economy and creating new job opportunities.
Sharif described the agreement as "historic" and a "milestone" in relations between the two countries.Pakistan hopes that these investments will improve its economy and create new employment opportunities. It said that Pakistan has a strong and reliable ally in Saudi Arabia which has been providing extensive financial and political assistance for a long time.
Sharif was on an official visit to Saudi Arabia from 6 to 8 April and a joint statement after the conclusion of his visit stressed, among other issues, Pakistan's cash-strapped economy and the Gulf kingdom's supportive role in mutual relations. Desire to strengthen trade and investment ties.
"Both sides reaffirmed their commitment to accelerate the first wave of the US$5 billion investment package previously discussed," the statement said.
The proposed Saudi investment comes as Pakistan is facing a serious economic crisis with high inflation rates and shortage of foreign exchange.Incidentally, the quantum of the proposed increase in deposits by Saudi Arabia in the Central Bank of Pakistan is equal to or greater than the additional arrangement of US$3 billion approved by the International Monetary Fund in July last year.
"In addition to increasing Saudi deposits in Pakistan's central bank, the agreement includes investments in a new oil refinery and copper mines," The News International quoted Mohammed al-Qahtani, CEO of Saudi Arabia Holding Company, as saying in a post.
The newspaper said the moves are part of a broader earlier agreement, where Saudi Arabia is in talks to invest US$21 billion in Pakistan, including setting up a US$7 billion copper mine and a US$14 billion investment in Pakistan. Includes establishment of oil refinery. ,
The report said that these investments are seen as a positive step towards strengthening economic ties between Pakistan and Saudi Arabia, supporting the Pakistani economy and creating new job opportunities.
Sharif described the agreement as "historic" and a "milestone" in relations between the two countries.Pakistan hopes that these investments will improve its economy and create new employment opportunities. It said that Pakistan has a strong and reliable ally in Saudi Arabia which has been providing extensive financial and political assistance for a long time.
