Saudi Arabia, UAE invest $26.8m in Pakistan

FE Team | Published: November 06, 2024 23:51:16

Saudi Arabia Crown Prince Mohammed bin Salman

ISLAMABAD, Nov 06 (Arab News): Pakistan's foreign investment surged by 48 per cent in the first quarter of the current fiscal year, according to state-run media reports on Tuesday.
Saudi Arabia and the UAE contributed a total of $26.8 million during this period. In 2023, Pakistan established the Special Investment Facilitation Council, a joint civil-military body aimed at expediting foreign investment decisions in key economic sectors, including agriculture, mining, minerals, and tourism.
This initiative came amid Pakistan's ongoing economic crisis, which had pushed the country to the brink of a sovereign default. The crisis was mitigated by a crucial $3 billion bailout from the International Monetary Fund last year, preventing further economic collapse.
According to a breakdown shared by Radio Pakistan, China led foreign investments in the first quarter with $404 million, followed by the UAE's $25 million and Saudi Arabia's $1.8 million. Other notable contributors included Hong Kong, with $98 million; the UK, with $72 million; and the US, with $28 million.
Radio Pakistan reported: "A significant increase of 48 per cent has been seen in foreign investment in Pakistan in the first quarter of the current fiscal year, reflecting the effective strategies of the Special Investment Facilitation Council."
During a recent visit to Saudi Arabia and Qatar, Pakistan's Prime Minister Shehbaz Sharif held talks with leaders from both nations to discuss boosting cooperation in trade, investment, and energy. Notably, in October, Pakistani and Saudi businesses signed 27 agreements and memorandums of understanding valued at $2.2 billion.
During Sharif's visit to the Kingdom last week, the two countries agreed to increase this figure to $2.8 billion.
The UAE remains Pakistan's third-largest trading partner, after China and the US, and serves as an important export market due to its proximity, which helps minimize transportation costs and facilitates trade exchanges.
In recent months, Sharif has been actively pursuing economic diplomacy in the region, focusing on securing investments, boosting trade, and improving regional connectivity.