By Staff Reporter
ISLAMABAD: – Pakistan expects to sign agreements worth around $2 billion with Saudi Arabia later this month, Prime Minister Shehbaz Sharif announced on Tuesday, as the country seeks to bolster its struggling economy.
A Saudi delegation, led by Investment Minister Khalid Bin Abdulaziz Al-Falih, will visit Pakistan from Oct. 9-11, comprising government and private sector representatives. The Saudi delegation will also take part in the Shanghai Cooperation Organisation (SCO) meeting that the country is hosting from Oct 15-16.
The deals follow Pakistan’s successful secured a $7 billion International Monetary Fund (IMF) bail out programme, facilitated by China, the UAE, and Saudi Arabia.
The Prime Minister told a cabinet meeting that these countries’ timely support helped Pakistan meet the IMF’s requirements, paving the way for the programme’s approval. All three friendly bilateral partners had confirmed to the IMF their $12 billion loan rollovers to Pakistan.
In August, Pakistan had requested Saudi Arabia to increase its lending by about $1.5 billion from its existing $5 billion portfolio to help bridge the external financing gap needed for the IMF’s 37-month bailout package.
Pakistan and Saudi Arabia are strengthening bilateral relations, with Riyadh reaffirming its commitment to expedite a $5 billion investment package, as Islamabad seeks to overcome a prolonged economic crisis.
The South Asian nation, struggling with depleted foreign exchange reserves and a weakened currency, has been courting regional allies to bolster its economy. The Special Investment Facilitation Council (SIFC), established last year, aims to fast-track investment decisions and attract foreign investment, particularly from Gulf countries.
Saudi Arabia’s investment package, initially announced earlier this year, is expected to support Pakistan’s vital sectors. The two nations have historically enjoyed close ties, with Saudi Arabia being Pakistan’s largest petroleum supplier and a significant provider of financial aid.
Sharif accused former Prime Minister Imran Khan’s Pakistan Tahreek-e-Insaf (PTI) party of attempting to disrupt stability, linking recent clashes with police to economic gains. “They’re trying to stay relevant as the economy improves, IMF programme succeeds, inflation drops, and exports rise,” the PM said.
Sharif recalled PTI’s 2014 dharna, which led Chinese President Xi Jinping to cancel his Islamabad visit, compromising Pakistan’s economy.
“In 2014, PTI compromised Pakistan’s economy as Chinese President Xi Jinping had cancelled his visit to Islamabad due to the days-long dharna,” the PM said. “We will not allow it to be repeated. We will not tolerate it at any rate, at any cost. This is my promise. I will not let it happen.”
Sharif said he assured Chinese government that Islamabad would provide foolproof security for its nationals in the country, following a deadly blast near Karachi’s international airport that killed two Chinese citizens.
Sharif briefed the cabinet on his meeting with China’s ambassador to Pakistan, saying “no stone will be left unturned” to ensure the safety of Chinese nationals.
Sunday’s attack, claimed by the separatist Balochistan Liberation Army (BLA), occurred outside Karachi’s airport. The incident has raised concerns ahead of the Shanghai Cooperation Organization (SCO) summit.
“Indeed, the Chinese [officials] are saddened. However, we have assured them that we have made complete security arrangements for the upcoming SCO summit,” the PM said.
The Prime Minister said he had informed Chinese officials that Pakistan regretted the incident and was embarrassed by it.
“But this does not mean that we will let go of matters. Our spirits are higher than they were before,” Sharif said. “And we will not spare any effort in strengthening these matters and to make security unbreachable [for Chinese nationals].”
Without naming any country, Sharif hinted at external involvement, saying “internal and external enemies are united” to harm Pakistan. “We all know who finances them,” he added. “God willing, Pakistan will move forward.”
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