Saudi Arabia and UAE have offered Pakistan over $30 Billion in loans and Investments: WSJ

naveed

Chief Minister (5k+ posts)
Saudi Arabia and the United Arab Emirates have offered Pakistan over $30 Billion in loans and investments, says a report published in the Wall Street Journal.



According to the publication, Pakistani Prime Minister Imran Khan has opened a new chapter in the country’s long history of using its strategic position to win foreign support.

The package will allow the Pakistani government to delay the politically painful prospect of borrowing from the IMF.

According to the WSJ, the plan includes a $10 Billion Saudi investment to build an oil refinery and petrochemical complex.

In addition, Saudi Arabia and the UAE are set to provide immediate loans to Pakistan of up to $12 billion in cash and deferred oil payments.

The loan pledge gives Pakistan some breathing space as it battles a balance of payment crisis which the Imran Khan led government inherited with forex reserves depleting fast and a ballooning trade deficit, with experts saying an IMF loan will be needed, which would require economic reform.

Pakistan has been in negotiations with the IMF since October 2018 to work out a program with conditions the government could accept.

WSJ quoted finance Minister Asad Umar as saying “We would like to be in an IMF program once we reach a program which we think is in the interest of the Pakistan economy”.

Economists say that an IMF program would typically require an enforced slowdown in growth to restrain imports, increased taxes, higher prices for electricity and gas, and further depreciation in the currency.
Pakistan’s foreign exchange reserves held by the Central Bank stand at just $6.9 billion which covers less than two months of imports.


The Saudi oil minister, who visited Pakistan this month, has said that Saudi Arabia is also in “quite advanced” talks with Pakistan over mining, fertilizer production, power generation and renewable energy projects.

That includes a wish to buy two newly built power plants in Pakistan, likely to fetch up to $5 billion, Pakistani officials said.

In addition to these China is also in talks to provide around $2 billion to $3 billion.

According to the report, Saudi Crown Prince Mohammed bin Salman is expected to visit in February to sign off on the kingdom’s deals.

https://mettisglobal.news/saudi-arabia-and-uae-have-offered-pakistan-over-30-billion-in-loans-and-investments-wsj/
 
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shahidsaqi

Senator (1k+ posts)
if this is true then bye bye Pakistan as independent country (though still we have doubts about few areas already)
 

Sonya Khan

MPA (400+ posts)
Makes me think ... was Nawaz Sharif sitting on these investments effectively stalling them ???... was also stalling the role of Pak in Afg peace process??? ..... was isolating Pak on purpose???....
 

Will_Bite

Chief Minister (5k+ posts)
if this is true then bye bye Pakistan as independent country (though still we have doubts about few areas already)
We have a more than 50 year old relationship with Saudi and UAE, which has weathered a lot. We have a lot more in common with them than we do with IMF.
Whats importantn to note is that all these countries have not really taken a lot of time to put up funds, and announce investments, and that too of a large nature. Out of $30 billion, $18 billion is investment. That is major.
Relax. Pakistan is on the right track after decades of misrule and mismanagement. Long term results dont come overnight.
 

shahidsaqi

Senator (1k+ posts)
We have a more than 50 year old relationship with Saudi and UAE, which has weathered a lot. We have a lot more in common with them than we do with IMF.
Whats importantn to note is that all these countries have not really taken a lot of time to put up funds, and announce investments, and that too of a large nature. Out of $30 billion, $18 billion is investment. That is major.
Relax. Pakistan is on the right track after decades of misrule and mismanagement. Long term results dont come overnight.
Allah kre ji sb theek hi ho
 

wadaich

Prime Minister (20k+ posts)
Loan is a thing...........which never brings prosperity. By the would it be interest free.
 

miafridi

Chief Minister (5k+ posts)
Imran Khan Government successfully ended balance of payment crisis without IMF, which in itself is a feat. I am sure if it was Nawaz or PPP Govt they would have went straight for IMF loan.
 

Londoner/Lahori

Minister (2k+ posts)
Makes me think ... was Nawaz Sharif sitting on these investments effectively stalling them ???... was also stalling the role of Pak in Afg peace process??? ..... was isolating Pak
Simple answer to your question:
It’s a very well known secret that,
Nawaz was an Indian stooge, everything he did, benefitted Indians, his job was to deliver Pakistan to India, that’s why he is in jail, not for corruption, ln future whenever there’s a good term developed between Pakistan and India, kulbhoshan and nawaz will benefit.
 
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