RIYADH -:Saudi Arabia has announced that it is to make a huge foreigninvestment – in fact, the biggest in Pakistan’s history. Pakistan’s financeminister, Asad Umar, announced that cabinet approval needs to be gainedbefore the investment can be accepted, but seemed excited at the prospect.
Saudi Crown Prince Mohammad Bin Salman seems eager for the deal to gothrough as he keeps nudging Pakistan “through other people to hurry up”link. But what would a huge Saudi investmentin Pakistan mean, and what would the ramifications be throughout the restof the world?
The foreign investment is likely to come in the form of a bailout ofIslamabad, the subject of recent talks between the two nations. The movehas already received some raised eyebrows from the international communityas many others pulled out of the Saudi investment conference while the caseregarding murdered journalist Jamal Khashoggi is properly investigated.
Pakistan attended and made clear that they would be happy to accept foreigninvestment into projects in Pakistan.
Pakistan is in the throes of a balance-of-payments crisis and waspotentially even looking for an IMF bailout, so the money from Saudi Arabiawould be a welcome offer to shore up Pakistan’s finances.
Measuring the effect the Saudi investment into Pakistan might have can bedone through the way it would affect global stock markets.
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This can allow those interested in trading using platforms such asthat offered by IG link to monitor the variouscommodities that would be affected by any major changes in either SaudiArabia or Pakistan.
Saudi Arabia is famous for its oil reserves, while Pakistan exports rice,cotton fibre, and various textiles – particularly those used to makesportsgoods.
Indeed, a recent announcement ensured that five export industries wereoffered cheapelinkelectricity in order to boost the country’s economy.
