Islamabad, Nov 7: Saudi Arabia and UAE Invest $26.8M in Pakistan
In the first quarter of current fiscal year, Pakistan’s foreign investment increased by 48%, demonstrating the country’s economic recovery.
China made the largest investment of $404 million, followed by Hong Kong, the United Kingdom, and the United States, while Saudi Arabia and the United Arab Emirates invested a total of $26.8 million.
The Special Investment Facilitation Council (SIFC), a special civil-military organization established in 2023 to expedite investment in important industries including mining, tourism, and agriculture, is responsible for this rise.
The creation of the SIFC aimed to steady the economy following Pakistan’s economic turmoil, which resulted in a $3 billion bailout from the International Monetary Fund last year.
Recent trips by Prime Minister Shehbaz Sharif to Saudi Arabia and Qatar focused on strengthening economic, investment, and energy connections.
Pakistan and Saudi Arabia signed 27 deals totaling $2.2 billion in October, with hopes to raise that amount to $2.8 billion.
Sharif emphasis on economic diplomacy to improve foreign relations and increase investment is seen in this development.
The UAE, which is in third place behind China and the US, is nevertheless an important commercial partner for Pakistan.
It is a significant export market because of its close proximity, which lowers transportation costs.
In an effort to establish Pakistan as a transit hub, Sharif’s administration has been aggressively utilizing Pakistan’s advantageous geographic location to fortify economic ties between Central Asia and the Gulf.
With Pakistan’s advantageous location acting as a link for both regional and international trade, this increase in foreign investment shows confidence in the country’s market potential.
Sustained economic stability relies on ongoing foreign involvement, government’s proactive diplomatic stance and its open investment strategies.
