The Prime Minister’s trip to Saudi Arabia has yielded significant economic dividends already, with a joint announcement of some $5 billion worth of investments soon after PM Shehbaz Sharif met Crown Prince Mohammad bin Salman in Makkah. The investment is the first tranche of a $25 billion investment agreement announced late last year after meetings between the crown prince and then-caretaker Prime Minister Anwarul Haq Kakar.
Pakistan desperately needs foreign investment to boost its economy, and Saudi investment in Pakistan can help create jobs and stimulate economic growth. This is particularly important given the high levels of unemployment, especially among young people. With Saudi investment, new businesses can be established, and existing ones can be expanded, providing much-needed employment opportunities.
Given that Saudi Arabia is one of the few countries willing to invest heavily in Pakistan, it is no surprise that the kingdom was the destination of Shehbaz’s first foreign visit since being elected Prime Minister. Islamabad has been wooing Saudi interest in almost every area of the economy, from industry to agriculture to mining and minerals. Most recently, the government has also been trying to attract Riyadh’s interest in PIA. The government is also hoping that Saudi investment and aid can have a knock-on effect of compensating for Islamabad’s own belt-tightening on social services, which has had an aggravated impact due to the fallout from natural disasters and climate change on infrastructure in some of the poorest parts of the country.
The need for investment is so dire that even critics of Saudi foreign policy are willing to acknowledge that any strings attached will be acceptable. Some of these fears were already allayed by the strong personal relationships that the Sharif family has developed with the Saudi royals over the past 30 years. Also, given the kingdom’s recent image-building efforts across the world, it is unlikely that it would risk any harsh conditions that might create negative public opinion anyway.
Published in The Express Tribune, April 10th, 2024.
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