Saudi Arabia superb $20bn investment in Pakistan will pay dividends and has been hailed as great piece of business, that will pay Saudi Arabia with dividends for years to come.
Not only was its a business master stroke, it also ensures that Pakistan and Saudi Arabia maintain invested interests that will align the two countries futures.
Earlier this week Pakistani Foreign Minister Shah Mehmood Qureshi has hailed multi-billion-dollar Saudi investments in his country as a major boost to economic stability.
Speaking at a top-level summit of business leaders in Islamabad, Qureshi praised the Kingdom’s support for Pakistan and recent decision to pump $20 billion into development projects there.
Qureshi pointed to the establishment of special economic zones within the framework of the China-Pakistan Economic Corridor project (a collection of infrastructure programs throughout Pakistan), To the deep sea port Gwadar, which would encourage investment in Pakistan aimed at promoting sustainable development and economic stability.
Located in the southwestern province of Balochistan, Gwadar is the crown jewel of China’s $60 billion investment in its Belt and Road Initiative projects in Pakistan.
Beijing has pledged to invest $60 billion as part of the China-Pakistan Economic Corridor to help turn Pakistan into a major route linking western China to the world.
The project involves building major highways and railways, higher-capacity ports, and power stations.
Saudi Arabia says it plans to set up a $10 billion oil refinery in Pakistan’s deep water port of Gwadar, which is being developed with the help of China.
“Saudi Arabia wants to make Pakistan’s economic development stable through establishing an oil refinery and partnership with Pakistan in the China-Pakistan Economic Corridor,”
The developments come amid Pakistan’s negotiations with the International Monetary Fund to secure an $8 billion bailout package.