The Kingdom of Saudi Arabia have pledged investment worth US$ 20 billion in Pakistans’ fragile economy. This comes after the kingdom’s Crown Prince Mohammed bin Salman is on an Asian tour.
Pakistan is in urgent need of loans from the international community to support it’s weakening economy. The deal includes construction of an oil refinery in Pakistan’s Gwadar port.
Apart from this several memorandums of understanding were signed in energy, petrochemicals and mining sectors.
The country’s central bank have just US$ 8 billion in foreign reserves and is desperate for cash.
Pakistan’s prime minister Imran Khan had toured several foreign nations after coming into power for a bailout package, and has been trying to woo the international monetary fund too. The country is in need for a 13th bailout since the 1980’s, Saudi Arabia have provided US$ 6 billion loan already.
The Saudi crown Prince MBS will tour India and China after Pakistan.
The Kingdom and Pakistan share close relations, including strong military relationship.
(The Pigeon Express Opinion– Pakistan is desperate for money, and this Saudi Arabia is proving. It’ll be interesting to see how India gets the Arab nation to stop or slow down investments in Pakistan in wake of Pulwama attacks.)