Amid the tough economic situation, Prime Minister Shehbaz Sharif is looking to Saudi Arabia to invest in Pakistan. Monday, he invited Saudi businessmen to invest in various economic sectors of Pakistan.
Pertinent to mention, this is not the first time that Pakistan sought financial help from Saudi Arabia. Back in 2019, during the PTI tenure, Saudi Arabia and Pakistan signed Memorandums of Understanding (MoUs) for investment cooperation worth $20 billion.
The Saudi Crown Prince Mohammed bin Salman (MBS) met with former Prime Minister Imran Khan and expressed the hope that the investment will grow to bigger numbers in the coming years and be beneficial for both countries.
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However, the $20 billion deal between Pakistan and Saudi Arabia has failed to materialize. Interestingly, Saudi Arabia wanted to invest $20 billion in Pakistan with a condition that the investment should be insulated from the political and bureaucratic elite.
Saudi Arabia’s condition for investment
Former chairman of the Board of Investment (BoI) Haroon Sharif has claimed that Saudi Arabia pledged to invest $20 billion in Pakistan. He made the claims while speaking at Grand National Dialogue organized by the Islamabad Policy Research Institute.
During his address, Haroon Sharif claimed that the Saudi Crown Prince Mohammed bin Salman (MBS), wanted to invest $20 billion in Pakistan with a condition that the investment should be insulated from the political and bureaucratic elite.
Haroon Sharif further claimed that during their meeting in 2019, MBS took him aside and said the Saudi government was committing $20bn in investment to Pakistan, but “unless you insulate it from politics and bureaucracy this will not happen”, he quoted the crown prince as saying.
#BREAKING #Pakistan: Muhammad Bin Salman wanted to invest $20 billion in Pakistan with a condition that it would be insulated from the political and bureaucratic elite” – Sharif Haroon #GND22 @IPRI_Pak pic.twitter.com/yBEe7fbkJm
— Asian Strategic Times (@AST_HQ) June 20, 2022
To clarify, Pakistan’s political scene has been marked by instability which has become a discouraging factor for investors. There are frequent political interventions and public protests. Even PML-N leader and Federal Minister for Planning Ahsan Iqbal agreed.
Read more: Saudi Arabia’s loan to Pakistan: Aid or a Trap?
Speaking on the occasion, Ahsan Iqbal said Pakistan needed a long-term sustainable policy plan of action, one that should not be interrupted owing to political considerations. He said no investment could be sought “until and unless we put our house in order, and that necessitates a consistent policy backed by all the stakeholders”.