Saudi Arabia to invest billions in Pakistan

Ag agencies

ISLAMABAD: The government on Wednesday said $7 billion investment would be made in Pakistan from Saudi Arabia over the next two years and made it clear that no efforts were being made to push Pakistan into the Yemen conflict.

“When we took over the reins of the country, the Pak-Saudi relations were strained,” said Foreign Minister Shah Mehmood Qureshi while addressing at a press conference alongside Information Minister Fawad Chaudhry and Adviser to PM on Trade and Commerce Abdul Razak Dawood.

"A vacuum was created in the Pak-Saudi ties due to some reasons," he said, adding that the harmony in ties between the two countries would be witnessed during the visit of Saudi Crown Prince Mohammad bin Salman to Pakistan.

The Saudi crown prince will arrive in Pakistan on February 16 for a two-day visit, according to the Saudi ambassador, and is expected to stay at the PM House.

The visit of the Saudi crown prince is being billed as one where history of sorts will be made as it’s the first time that such a big and high powered delegation will accompany a Saudi dignitary.

At least eight investment memoranda of understanding (MoUs) will be signed, details will follow later and the delegation accompanying Prince Salman will include his associates, ministers, advisers and CEOs of large Saudi companies. The two countries will also discuss ways and means to develop a robust follow-up mechanism to ensure effective implementation and quick progress on tangible areas of cooperation.

“A coordination council will be set up and it will be headed by Prince Salman and Prime Minister Imran Khan,” added the minister and the relevant ministries will also have representation in this coordination council so that there is practical implementation on all the MoUs, which will be signed.

Qureshi explained that a lot of homework had been completed before the royal visit and this was evident from the visit of a team from Saudi Arabia on directions of Prince Salman to assess for themselves the areas for potential investment in different areas of Pakistan.

It was decided by Saudi Arabia that this was not just another visit but rather one where there was a serious desire to invest in Pakistan. It was only after holding in depth talks with Pakistani officials that they returned home and agreed to sign at least eight MoUs with Pakistan. Qureshi pointed out that this support from Saudi Arabia was not possible without the back to back visits to the Kingdom by Prime Minister Imran Khan as relations had taken a dip during the last government.

“Saudi Arabia is fully supporting and helping Pakistan in this difficult time,” said the minister while recalling the multi-billion dollar balance of payments support and deferred payment facility for oil supplies already provided by the Saudis.

The minister said such a huge Saudi delegation would never have visited Pakistan before. He said the delegates would include Saudi ministers, heads of Saudi companies and high-ranking officials. He lamented that even if something good happens, efforts are made to unearth conspiracies here.

"No effort is being made to push Pakistan into Yemen conflict, neither has Pakistan given any assurance to join the war," Qureshi said. He said Saudi Arabia is interested in setting up an oil refinery in Pakistan, whereas it would also invest in mineral resources here.

"This investment is bilateral and has nothing to do with CPEC," the minister said. Speaking at the presser, Abdul Razak Dawood said that $7 billion investment would be made in Pakistan from Saudi Arabia over the next two years.

"Saudi investors are more interested in food and agriculture sectors," he added. Fawad Chaudhry said this was the first time since the tenure of former premier Zulfiqar Ali Bhutto that Pakistan was playing such a key role in the region.

Shah Mehmood also said that Pakistan would raise the matter of Pakistani nationals jailed in Saudi Arabia, however, this would not include countrymen involved in heinous crimes. He also shared with the media his forthcoming trip to Germany which he said was “very important”. He would be meeting Afghan President Ashraf Ghani there and also co-chair a panel where the evolving situation on Afghanistan and the region would be discussed.

Meetings will also be held with the foreign ministers from Russia, Germany, Uzbekistan and Canada. Later, he will meet with a US delegation comprising of members of Senate and the US House of Representatives.