According to government sources involved in these discussions, the indicated returns on Saudi investment are expected to allow the Kingdom to recoup its invested capital within a period of three to nine years, depending on the nature of the project.
Pakistan aims to advance the Saudi Arabia investment initiative during the April 27-28 visit of Prime Minister Shehbaz Sharif, who will be accompanied by a team from the Special Investment Facilitation Council (SIFC).
During their two-day visit to Pakistan, the Saudi delegation asked maximum questions about projects in the areas of agriculture, mining and Diamer Basha dam, said the sources. These are the areas where the government has indicated maximum returns on the investment.
Although initially eying on a $25 billion bonanza, Pakistan has now adjusted its expectations to a $5 billion investment by June 2025.
One of the concerns of Saudi Arabia was that Pakistan was withholding the repatriation of profits due to external sector liquidity constraints. However, Pakistan assured that Saudi investors would get priority in repatriation of profits, said the sources.
Prime Minister Shehbaz Sharif has already given instructions to the State Bank of Pakistan (SBP) to give Saudi Arabian companies preference in repatriation of the profits.
Pakistan allowed $694 million repatriation of the profits during the first eight months of this fiscal year, which was more than double compared to the previous fiscal year but it was still $900 million less than the pre-crisis period.
