Saudi Investment

17 April 2024

Published in: The Nation

At long last, it seems that our visits to our regional counterparts, particularly Saudi Arabia, have started to yield some very promising results. A high-powered Saudi delegation has arrived in Pakistan following the PM’s visit, and the purpose of the delegation is clear: finalise and extend the discussed investments.

Foreign investments are not to be treated as gestures – they are essential pillars for our economic growth trajectory moving forward. Relying solely on borrowing from financial institutions like the IMF will only keep us afloat for so long. At some point we need to look towards more optimal solutions to cover the debts burdening our nation, and Saudi investments can provide some handy funds for our critical sectors.

As the country now endeavours to separate from stateowned enterprises, foreign investment becomes all the more necessary. We need money to revitalise projects like Reko Diq that have been put on the sidelines for far too long, and the potential of such projects cannot be overstated. Reko Diq is a literal gold mine nestled in Balochistan, and if we can secure investment from the Saudis, we can realise one of the many potential domestic sources for economic growth, with no reliance on the borrowing that we have become accustomed to. This is a substantial vote of confidence of the Saudis in Pakistan’s economic potential. We cannot let this opportunity go to waste. If all goes well, the SIFC can facilitate this process and eliminate any of the usual bureaucratic hurdles we undergo under such circumstances. This is a concrete opportunity for us, as a nation, to break the trend of relying on loans to stay afloat, and we should not treat this investment as pocket change for temporary relief.

While past visits to Saudi Arabia may not have yielded the best outcomes, Pakistan cannot afford to falter this time. With our debts mounting, the potential benefits here extend far beyond the immediate financial relief we may be able to get. With the right backing, we can breathe some air into other projects as well that have been hindered for one reason or another, and pave the way for real sustainable growth.