PM Kakar says Saudi Arabia to invest $25bn in Pakistan over next 5 years

Saudi Arabia will invest up to $25 billion in Pakistan over the next two to five years in various sectors, caretaker Prime Minister Anwaarul Haq Kakar said on Monday, adding his government would also revive a stalled privatisation process. The country is embarking on a tricky path to economic recovery under a caretaker government after a $3bn loan programme, approved by the International Monetary Fund (IMF) in July, averted a sovereign debt default. Kakar, speaking to journalists at his official residence, said Saudi Arabia’s investment would come in the mining, agriculture and information technology sectors, and was part of a push to increase foreign direct investment in Pakistan. There was no immediate response to a Reuters request to the Saudi Arabian government for comment on the premier’s remarks. If confirmed, a series of investments worth $25bn would be the biggest ever by the kingdom in Pakistan. A longtime ally of Riyadh, Pakistan is dealing with a balance of payments crisis and requires billions of dollars in foreign exchange to finance its trade deficit and repay its international debts in the current financial year.