Saudi Arabia and Pakistan signed deals of investment in agricultural and energy sector on the 18th of February 2019. Setting up of a $10billion oil refinery in the south west region of the city of Gwadar is also part of this deal.
Saudi Arabia’s Crown Prince, Mohammed Bin Salman said at the press meet that his country has signed the memorandums of understanding with the Prime minister of Pakistan, Imran Khan that are worth about twenty billion dollars. He also said that they are thereby creating a great future of both the countries. The Prince reached Islamabad on Sunday on a two day trip. The two nations signed investment deals in energy sector and agricultural sector. here
It is noted that Pakistan is trying to revive its economy hurt by widening its current fiscal and account deficits. The investment plans by Prince Mohammed might help the country to revive its fiscal deficits to some extent.
Saudi Arabia has already given a $3 billion loan to Pakistan, while the United Arab Emirates provided $1 billion, as a part of its balance payment so as to help the second biggest economy of Asia to avert from its financial crisis. Support from Saudi Arabia comes to Pakistan as the later has stalled all its negotiations with the International Monetary Funds for its proposed reformed through Mr. Asad Umar, financial minister of Pakistan. These funds would help the country to ease its crisis with balance-of-payments and help it to boost its foreign reserves.
When a senior economist from Standard Chartered spoke on this issue in Delhi, he stated that such infrastructure and investment projects would serve as an energy boost to the economy of Pakistan. He also added that for its law makers to enhance the economy of the country they need to address the twin problems of fiscal deficit and action towards framing a sound monetary policy.
How lavish was the Saudi King’s visit to Pakistan
The last time a Saudi ruler king visited the nuclear armed nation was way back in 2006, which invited enough fanfare from people all over the world. This time, the security aspects were taken care quite seriously as the Prime Minister personally taking care of all the security arrangements, which perhaps could be the reflection of Pakistan being blamed for its worst terror attacks against India at Pulwama.
The JF-17 Thunder Flights was escorted by the fleet of soldiers on Sunday Evening as it entered the airspace limits of Pakistan when all other flights were grounded. The prince was greeted by the Prime Minister and the Powerful army chief of Pakistan on the red carpet at the military airport and was given a 21 bullet salute.
The Prime Minister personally drove the Prince to the official residence of the Prime Minister and the Prince is expected to stay here in his two day visit. For the strong delegation, hundredths of five star rooms are booked in Islamabad, and thousands of pigeons were caught for the welcome ceremony. It is known that the highest civilian honor would be conferred on the Prince for his reformist ideas.