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Tuesday March 19, 2024

Pakistan invites Saudi Arabia to be CPEC third partner

Federal Minister for Information and Broadcasting Chaudhry Fawad Hussain on Thursday said Saudi Arabia was the first major country invited by Pakistan to become a partner in the China-Pakistan Economic Corridor (CPEC).

By Mumtaz Alvi
September 21, 2018

ISLAMABAD: Federal Minister for Information and Broadcasting Chaudhry Fawad Hussain on Thursday said Saudi Arabia was the first major country invited by Pakistan to become a partner in the China-Pakistan Economic Corridor (CPEC).

Speaking to the reporters here, Fawad apprised them of Prime Minister Imran Khan’s visit to Saudi Arabia and the United Arab Emirates (UAE). The minister said Pakistan's main interests lay in cooperation with Saudi Arabia on trade and security matters.

He said a high-level coordination committee had been formed, which enjoyed complete backing of King Salman bin Abdul Aziz Al-Saud, Crown Prince Muhammad bin Salman and Prime Minister of Pakistan Imran Khan.

He said high-level delegations from Saudi Arabia and the UAE would visit Pakistan in the first week of next month to discuss trade and security. He said Saudi ministers of treasury and power as well as business leaders would be part of the delegation.

“Pakistan and Saudi Arabia will finalise an important economic partnership during this visit,” he said. The minister noted that Saudi Arabia was the first country that Pakistan had invited to become a third partner in CPEC.

He said the projects that Saudi Arabia would be investing in were to be worked out during the delegation's visit. "We expect major investments from Saudi Arabia, as our strategic cooperation has been revitalised. We have assured the Saudi leadership that we will continue to provide security to their country and provide strategic support wherever needed".

Our correspondent adds: The Saudi delegation will finalise the details of financial assistance required by Islamabad in the form of Saudi investments in CPEC, provision of oil on deferred payment and dollar deposits in Pakistan to boost the country’s foreign exchange reserves.

Background interactions with some PTI ministers, who were accompanying Prime Minister Imran Khan during his maiden visit to Saudi Arabia, reveal that in principle the Saudi rulers had agreed to assist Pakistan. However, the details of assistance and cooperation will be finalised next month when the Saudi delegation will be visiting Pakistan for the same purpose.

A minister confided to The News that Pakistan wanted Saudi Arabia to become a third partner in the CPEC.

The proposal given to Saudi rulers was to invest in CPEC projects and help develop an “oil city” in or around Gwadar in Balochistan. The ministerial source said Pakistan also wanted Saudi Arabia to supply it oil on deferred payment for next five years.

The source insisted that Pakistan may get the facility for three years which would be a great help for Islamabad.

To improve Pakistan’s foreign exchange reserves, the source said, the Pakistani side also sought from Saudi authorities to have their deposits in Pakistan. The minister hopes that Islamabad may get deposits of at least a few billion dollars.

Another minister said the Saudi authorities like always were inclined to help Pakistan. Details of Saudi assistance, their investment or cooperation in any other form will be decided next month when Saudi delegation will arrive to materialise what was discussed during prime minister’s visit.

The minister said Pakistan also took up the issue of Pakistanis working in Saudi Arabia. Islamabad not only sought exemption of recently imposed annual charges for Pakistanis working, but also demanded more jobs for Pakistanis in Saudi Arabia.

These sources said in his brief visit to UAE, the prime minister and his team also discussed how Pakistan and UAE could further their economic ties. It is said that a delegation from the UAE will also visit Pakistan to discuss the details of their cooperation.

The Foreign Office, it is said, will finalise the dates of UAE delegation’s visit to Pakistan and it is expected that this visit will also take place during October 2018. Although the Pakistani delegation members sound optimistic about the possible help Islamabad could receive from the two Islamic brethren countries, the ministerial sources are not yet sure if Pakistan could still avoid approaching the IMF.

As country’s foreign exchange reserves squeeze, Pakistan had already reached out to China, which during the caretaker government had helped Islamabad with $2 billion. It is said that Pakistan is asking for more loans from China to avoid a foreign currency crisis.

According to media reports, Pakistani officials have told their Chinese counterparts in case the country seeks a bailout from the IMF, details of CPEC and how it is being funded will have to be shared with the Fund, which may force it to cancel some of the infrastructure projects already planned.

The UAE would also help Pakistan in many projects, including the provision of fresh water to Karachi for which delegations from UAE was due in Pakistan in October to discuss these matters.