Saudi CP to visit Pakistan to finalise investment projects

islamabad — A record investment package being prepared by Saudi Arabia for Pakistan will likely provide welcome relief for its cashstrapped ally, while also addressing regional geopolitical challenges, analysts say.

At the heart of the investment is a reported $10 billion refinery and oil complex in the strategic Gwadar Port on the Arabian Sea, the ultimate destination for the massive multi-billion dollar China Pakistan Economic Corridor, which lies not far from the Indo-Iranian port of Chabahar.

Two Saudi sources have confirmed that Saudi Crown Prince Mohammed bin Salman will visit Islamabad shortly, without giving a date.

And a number of major investment deals are expected to be signed during a visit, officials from both countries have said.

Riyadh and Islamabad, decadesold allies, have been involved for months in talks to hammer out details

of the deals in time for the high-profile visit.

“The outcome of the talks so far has been very positive and this is going to be one of the biggest-ever Saudi investments in Pakistan,” a senior finance ministry official said.

“We hope that an agreement to this effect will be signed during the upcoming visit of the Saudi crown prince to Pakistan,” said the official, requesting anonymity.

The reported

last month that both Saudi Arabia and the United Arab Emirates, Islamabad’s biggest trading partner in the Middle East, have offered Prime Minister Imran Khan some $30 billion in investment and loans.

Riyadh investments are expected to provide a lifeline for Pakistan’s economy, Saudi economist Fadhl Al Bouenain said.

“Saudi investment to Pakistan comes within an economic aid package aimed at relieving the stress of external debt and a shortage of foreign currency, besides boosting the sluggish economy,” Bouenain said. “One of the goals for Saudi Arabia expanding investments in refining worldwide is to secure market share and sustainable exports in the face of international competition,” Bouenain said.

Saudi Energy Minister Khalid Al Falih visited Gwadar in January and inspected the site for the proposed oil refinery at the deep sea port, just 70km away from its Iranian competitor, Chabahar.

He was quoted by local media as saying the kingdom was studying plans to construct a $10 billion refinery and petrochemicals complex in Gwadar. A pipeline from Gwadar to China would cut the supply time from the current 40 days to just seven, experts say.

“Pakistan needs a rich partner to enter as a third party besides China, capable of injecting needed cash,” Bouenain said.