Pakistan to attract $27bn from friendly states in coming years

Author: Agencies

Pakistan is set to secure more than $27 billion in foreign direct investment from Asian and European countries including Saudi Arabia, United Arab Emirates, Kuwait and others in the coming years, state-run media reported on Sunday.

Facing a prolonged economic crisis, Pakistan has turned to regional allies in the Middle East and Central Asia in recent months for foreign investment. The South Asian country sees foreign investment as the answer to an economic crisis that has seen its foreign reserves decline considerably and currency weaken over the past two years.

“With the facilitation of the Special Investment Facilitation Council, the government is set to attract more than twenty-seven billion dollars in foreign direct investment from Asian and European countries in the coming years,” state broadcaster Radio Pakistan reported.

The SIFC is a hybrid civil-military government body formed in 2023 to fast-track decision-making and attract investment in Pakistan’s critical sectors such as minerals, IT, defense and agriculture. The body aims to attract international investments, particularly from Gulf countries.

“Among the notable investors, Saudi Arabia has pledged to invest five billion dollars, while the UAE and Kuwait want to invest ten billion dollars each, while Azerbaijan has expressed desire to invest two billion dollars,” Radio Pakistan said.

It said the investment’s main objective is to assist in “stabilizing” Pakistan’s economy by developing its key sectors.

Radio Pakistan said Azerbaijan is “particularly keen” to invest in Pakistan’s space industry projects, hydrometeorology and climate change initiatives.

“In addition to these investments, the Shaanxi Coal and Chemical Industry Group of China wants to contribute to Pakistan’s energy sector by exploring technological advancements and joint ventures in energy, petrochemicals, and industrial development,” it said. It said Pakistan is set to engage with Denmark’s “renowned mining companies” to modernize its mining industry using advanced technologies.