ALBAWABA - Saudi Arabia is considering to hike its investments in Pakistan to help prop up the economy of the south Asian Muslim nation.
On Tuesday, Saudi Crown Prince Mohammad Bin Salman urged the government of the oil-rich Gulf Arab state to consider raising its investments in Pakistan to $10 billion, the official Saudi Press Agency, SPA reported.
Saudi Arabia is Studying to Augment its Investments in Pakistan to Reach $10 b and Increasing its Deposit to CBP to $5b, it was Announced.https://t.co/rc9ZBBQfCe#SPAGOV pic.twitter.com/Muxj1GpqoY
— SPAENG (@Spa_Eng) January 10, 2023
Amid flourishing ties between the two countries, bin Salman also directed the Saudi Development Fund to consider increasing the amount of a deposit previously provided by Saudi Arabia for the Central Bank of Pakistan by $2 billion to $5 billion, a gesture that would give a major boost to Pakistan’s efforts to stabilize its deteriorating economy and improve the living conditions of its "brotherly" people, SPA added.
The moves are in line with a framework of existing communication between the Saudi Crown Prince and Pakistani Prime Minister Shehbaz Sharif, SPA pointed out.
In April, Sharif made his first foreign visit to Saudi Arabia after taking his office. He also visited the kingdom in October where he conferred with the Saudi crown prince and reviewed “historical relations” between the two countries and the ways to develop them in different fields, Saudi media reported.
Last month, Riyadh extended the term of the $3 billion deposit to back up Pakistan’s foreign reserves. The money was deposited in Pakistan’s central bank in 2021 as a loan to assist the Pakistani government in confronting the economic fallout from the COVID-19 pandemic.
Pakistan is facing a currency crisis due to its dwindling foreign exchange reserves, which have slumped to $4.5 billion, barely enough to cover three weeks of imports.
