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Saudi Arabia To Invest $25 Billion: PM Informs
Caretaker Prime Minister Anwaarul Haq Kakar announced that Saudi Arabia will invest up to $35 billion over the next two to 5 years. This investment will play a significant role in economic revival, especially in the recent economic nosedive or fractured economy of the country. The Saudi government will invest in a number of sectors for Pakistan’s economic recovery.
The primary sectors covered by Saudi Arabia's investment pledge include mining, agriculture, and information technology. The strategic goal of this multi-sector strategy is to increase Pakistan's FDI and support the country's economic recovery.
Potential Economic Game-Changer
This investment seems like a game-changing opportunity for Pakistan, which is now experiencing economic challenges under a caretaker government. The International Monetary Fund (IMF) credit agreement worth $3 billion helped the government barely avoid a debt default in July.
In order to manage its trade deficit and pay its debts to other nations during the current fiscal year, Pakistan, which is now suffering from a balance of payments crisis, urgently requires significant inflows of foreign money.
Untapped Mineral Wealth & Privatization Initiatives:
The interim prime minister Kakar also stressed Pakistan's enormous, untapped mineral wealth, which is conservatively estimated to be worth $6 trillion. According to Barrick Gold Corp, this includes the possibly profitable Reko Diq gold and copper mine, which Saudi Arabia's wealth fund may cooperate with.
Additionally, the administration is committed to speeding up the privatization process. Within the next six months, it wants to finish two privatization deals, probably in the government-run electricity industry. In addition, there are plans to privatize a non-energy government-owned company, demonstrating a commitment to addressing persistent financial issues inside state-owned organizations.
Significance of the Investment in Pakistan
For Pakistan's economic future, this large Saudi Arabian investment is of utmost importance. It not only offers crucial financial assistance to ease current financial strains, but it also represents a vote of confidence from a dependable ally. The varied industries targeted for investment may promote job creation, economic growth, and technological development. Furthermore, continued economic stability and prosperity may result from the future development of the Reko Diq mine and advancements made in the privatization process. Saudi Arabia's promise is a ray of hope for a better economic future as Pakistan works to overcome its obstacles on the economic front