Following Qatar and UAE, Saudi Arabia has also announced a $1 billion investment in Pakistan, to help the country come out of the crunch economic situation. The Saudi Foreign Ministry said in a statement that King Salman bin Abdulaziz has issued directives to invest $1 billion in Pakistan to help its economy.
Foreign Minister Appreciated the $1 billion Investment in Pakistan
The foreign minister, Bilawal Bhutto took to Twitter to welcome a $1 billion investment in Pakistan. He wrote; “Pleased to have conversation with HH FM @FaisalbinFarhan. Recalling fraternal bilat. ties, welcomed KSA commitment of $1 billion invest. in Pakistan. Briefed my counterpart on damages caused by unprecedented floods, highly value solidarity expressed & KSAs all possible assistance.”
Pleased to have conversation with HH FM @FaisalbinFarhan. Recalling fraternal bilat. ties, welcomed KSA commitment of $1 billion invest. in Pakistan. Briefed my counterpart on damages caused by unprecedented floods, highly value solidarity expressed & KSAs all possible assistance
— BilawalBhuttoZardari (@BBhuttoZardari) August 25, 2022
The $1 billion investment in Pakistan came right after UAE and Qatar decided to help the cash-strapped country. Qatar Investment Authority (QIA) announced a $3 billion investment in Pakistan in their various commercial and investment sectors. On the other hand, the United Arab Emirates (UAE) has also announced an investment of one billion dollars in Pakistan. Moreover, the IMF’s executive board is also set on 29th August 29 to approve a bailout package.
Pakistan’s Current Account Deficit Drops by 45%
2/2 The narrower deficit is the result of wide-ranging measures taken in recent months to moderate growth & contain imports, including tight monetary policy, fiscal consolidation & some temporary administrative measures. https://t.co/Od8ikVdOd5
— SBP (@StateBank_Pak) August 23, 2022
Pakistan’s current account deficit has narrowed by 45% to $1.2 billion in July compared to $2.2bn in June. According to SBP; “The narrower deficit is the result of wide-ranging measures taken in recent months to moderate growth & contain imports, including tight monetary policy, fiscal consolidation & some temporary administrative measures.” With the ongoing Russia-Ukraine conflict and recent floods in the country, the prices of energy commodities and food items have increased, putting immense pressure on net importers like Pakistan. Moreover, Pakistan’s foreign reserves have fallen as low as $7.8 billion which is hardly enough to cover more than a month of imports.
Also read: SBP-held Foreign Exchange Reserves Fall to $7.8 Billion; Lowest Since October 2019
