The flags of Saudi Arabia and Pakistan. (For representation)
Credit: iStock Photo
Islamabad: Pakistan and Saudi Arabia on Thursday signed a $2 billion investment deal in multiple sectors, including industry, mining and minerals, agriculture and energy, according to media reports.
The memorandums of understanding (MoU) were signed during the visit of a high-level Saudi delegation's visit to cash-strapped Pakistan to promote business ties.
The delegation, which arrived on Wednesday on a three-day visit, is being led by Saudi Minister for Investment Khalid Bin Abdulaziz Al-Falih. It includes 130 representatives of the government and the private sector.
Prime Minister Shehbaz Sharif, Al Faleh and Chief of Army Staff (COAS) General Asim Munir witnessed the exchange of the signed copies of the MoUs in the sectors of industry, agriculture, information technology (IT), food, mining and minerals, petroleum, energy and other areas of cooperation, the Dawn newspaper reported.
Addressing the occasion, the prime minister said the Saudi delegation's visit was a “true manifestation of great sincerity and affection” for the Pakistani people from Saudi Crown Prince Mohammed bin Salman.
He said the MoUs would be fully materialised, asserting that there would be “no delay or red tape-ism” in the implementation process, according to the report.
He also affirmed the government’s commitment to implementing the MoUs and transforming them into future agreements through “hard work and untiring efforts".
"The Saudi Minister for Investment will finalise various B2B investment proposals, estimated to exceed $2 billion,” Deputy Prime Minister Ishaq Dar said on Wednesday.
Dar expressed gratitude for Saudi's steadfast support during Pakistan’s recent economic challenges, highlighting the Gulf Kingdom's crucial role in helping Pakistan regain stability.
Saudi Arabia has been playing a key role in helping Pakistan come out of the current economic troubles, and it provided essential funds along with the UAE and China to make it possible for Islamabad to get a $7 billion loan from the International Monetary Fund.
The trip by the Saudi delegation comes ahead of the Shanghai Cooperation Organisation Summit next week and will boost economic ties between the two nations.
The Sharif government has been struggling to fix the economy.
The IMF on September 26 finally gave a nod to the assistance package and also released over $1 billion as the first tranche after Pakistan committed to certain conditions.
This $1 billion tranche came under an agreement to receive $7 billion over 39 months.