Planning Minister Ahsan Iqbal said on Thursday Gulf nations like Saudi Arabia and the UAE, among others, had identified a $19 billion investment portfolio for Pakistan, while China was now entering phase two of a multi-billion-dollar economic corridor project.
Pakistan has been pushing for foreign investment in recent months in a bid to shore up its $350 billion economy as it navigates a tough reforms agenda mandated by the International Monetary Fund (IMF).
“The world, which was viewing Pakistan as a failed economy, is once more looking at Pakistan with hope,” Iqbal said as he addressed a ceremony in Islamabad.
“China is extending its hand in the form of phase two of CPEC [China-Pakistan Economic Corridor]. Our friendly nations, Gulf countries, which include Saudi Arabia, UAE, Kuwait, Qatar, Azerbaijan, they have together identified a $19 billion portfolio under which they can invest in Pakistan. So, all these opportunities are once again knocking at our door.”
Rollovers or disbursements on loans from Pakistan’s long-time allies Saudi Arabia, the United Arab Emirates and China, in addition to financing from the IMF, have helped Pakistan meet its external financing needs in the past.
Last month, Pakistan and Saudi Arabia signed investment agreements worth $2.8 billion while Crown Prince Mohammed bin Salman has pledged to expedite a $5 billion investment portfolio for Islamabad.
The UAE committed this May it would invest $10 billion in promising economic sectors. Prime Minister Shehbaz Sharif also said this week Azerbaijan had pledged to invest $3 billion in multiple sectors of Pakistan’s economy.
Pakistan and the IMF signed a $7 billion loan program in September.
Pakistan’s economy has struggled for decades with boom-and-bust cycles, needing 23 IMF bailouts since 1958.