KARACHI: Faced with a financial and economic crisis, Pakistan Prime Minister Imran Khan’s first visit to Saudi Arabia could be the ideal solution to boost the country’s political and economic confidence, experts said on Tuesday.
The trip, which begins on Tuesday, holds even more significance as Khan is expected to seek $2-$3 billion in economic aid from the Kingdom, with an urgent need to inject around $9 billion into the economy — to stabilize external accounts largely inflated from high imports and insufficient exports.
“Pakistan expects an injection of around $2 billion to $3 billion in order to stabilize its foreign reserves position, currency and external balance sheet,” Dr. Bilal Ahmed, senior economic analyst, told Arab News.
Adding that Pakistan would largely benefit from the visit, especially if the Kingdom is convinced “to supply oil at concessionary rates which would mitigate pressure on the import bill to a large extent,” Dr. Ahmed said he believed, if successful, this “would be a big achievement of PM Khan”.
During the last fiscal year, 2017-18, the country’s imports of petroleum stood at a whopping $13.27 billion, imported from different countries, including Saudi Arabia. “If Pakistan gets the oil at a deferred payment or at relaxed conditions the issue of country’s cash will be resolved,” Syed Mazhar Ali Nasir, Senior Vice President of Federation of Pakistan Chambers of Commerce and Industry — an apex body of Pakistan’s industrialists and traders — told Arab News.
Bilateral trade is another area where economists stressed a need for negotiations with the Kingdom. “Seeking more waivers from payment on oil imports and loans from the Islamic Development Bank through Saudi’s help, we should explore avenues for exports to Saudi Arabia by ending tariff and non-tariff barriers that have decreased trade of goods and services,” Dr. Ikram ul Haq, a senior economist and expert in legal matters, suggested.
Despite holding great potential, bilateral trade between Pakistan and Saudi Arabia is only $3.4 billion and largely in favor of Saudi Arabia. Pakistan imported $3.1 billion worth of goods from the Kingdom during the fiscal year 2017-18, while exports stood at $316.7 million, data shared by the State Bank of Pakistan showed.
Suggesting new means to explore bilateral trade and investment — by relying less on traditional goods and services – Dr. Haq said: “Pakistan should try to win Saudi’s contracts for IT services as this is the area where we have potential to earn foreign exchange but we never tried. We must come out of traditional item like textile.”
Saudi Arabia imports a huge quantity of sanitary ware during the Hajj season mainly from other Middle Eastern countries. “This sanitary ware is imported from Pakistan and then exported after value addition. If Saudis start a joint venture with Pakistani manufacturers both countries can benefit,” Nasir said.
Adding that agriculture could be another sector that Pakistan could tap into to seek Saudi investment through joint ventures, Dr. Haq said: “This area has potential to grow fast and create export surplus. Saudis investors can be lured for modern corporate farming in Pakistan to earn substantial profits.”
Saudi officials have, in the past, expressed an interest in Pakistan’s mega projects – such as the China Pakistan Economic Corridor --- to help Pakistan benefit from Saudi Arabia’s investment and expertise in petrochemical sectors. “Pakistan should also seek Saudi direct investment in infrastructure development that will not only ease out the balance of payment situation but also yield long term benefits,” Dr. Haq said.
$3bn economic aid expected from PM Khan’s Saudi visit — economists
$3bn economic aid expected from PM Khan’s Saudi visit — economists
- Saudi’s financial assistance could ease cash flow pressure faced by Pakistan
- Bilateral trade, investment in joint ventures and CPEC projects to top agenda
Pakistan calls for calm after 16 people killed in Khamenei protests
- The violence came hours after Iranian authorities confirmed Supreme Leader Ali Khamenei was killed in coordinated US-Israeli strikes
- Nine people were killed in clashes in Karachi where protesters stormed US consulate, while UN offices were set ablaze in Gilgit, Skardu
ISLAMABAD/KARACHI/GILGIT/PESHAWAR: Pakistan’s Interior Minister Mohsin Naqvi on Sunday urged calm after at least 16 people were killed in protests linked to the killing of Iran’s Supreme Leader Ayatollah Ali Khamenei in joint US-Israeli strikes.
Hundreds of protesters gathered outside the US consulate in Karachi on Sunday morning. Videos showed protesters armed with sticks smashing doors and windows. Separate footage appeared to show property inside the consulate premises set on fire, prompting police to fire tear gas at them.
In Islamabad, protesters entered the Red Zone which houses key government and diplomatic offices in the capital, prompting authorities to fire tear gas to disperse the demonstrators. Similarly, people gathered outside the press club in the northwestern city of Peshawar, from where they were marching toward the US consulate.
At least nine people were killed and 60 others sustained injuries in clashes with law enforcement outside the US consulate in Karachi, according to authorities. Seven more were killed in the northern Gilgit-Baltistan region, where clashes left 45 people injured.
“After the martyrdom of Ayatollah Khamenei, every citizen of Pakistan is saddened in the same way as the citizens of Iran are grieving,” Naqvi was quoted as saying by his ministry.
“We are all with you. We request the citizens not to take the law into their hands, and to record their protest peacefully.”
Naqvi visited different areas of Islamabad and reviewed the law-and-order situation, according to the interior ministry. He ordered foolproof security arrangements at the Diplomatic Enclave, which is home to foreign missions, in Islamabad’s Red Zone.
PROTESTERS STORM US CONSULATE IN KARACHI
Additional Inspector General Karachi Azad Khan told reporters that protesters had managed to enter the US consulate from the outer gate before police dispersed them.
“Nine people are dead while 39 injured are being treated at the Shaheed Mohtarma Benazir Bhutto Institute of Trauma,” Karachi Police surgeon Dr. Summaiya Syed said in a statement.
She said seven others were injured at the Jinnah Postgraduate Medical Center, among them five police personnel, while 14 others were receiving treatment for wounds at private hospitals in the city.
Separately, the Sindh provincial government expressed grief at the loss of lives in the clashes outside the US consulate in Karachi, saying it had constituted a high-level joint investigation committee (JIT) to carry out an impartial investigation into the incident.
“The JIT will determine the circumstances in which the incident occurred and what its causes were,” a statement by the provincial government said, adding that it respects the constitutional right of citizens to protest.
VIOLENCE IN GILGIT-BALTISTAN
In GB, protesters set fire to and vandalized several buildings, including United Nations (UN) regional offices, according to Shabbir Mir, who speaks for the GB chief minister. Religious leaders were trying to quell the protests.
“Seven people were killed and 45 were injured in today’s clashes in Gilgit,” Dr. Wajahat Hussain, a senior health official in Gilgit, told Arab News on Sunday.
Tufail Mir, a deputy inspector-general of police, told Arab News several people were injured in the Skardu district as well.
MIDDLE EAST TENSIONS
The violence came hours after Iranian authorities confirmed Khamenei was killed in coordinated strikes carried out by the US and Israel, dramatically escalating tensions in the Middle East and triggering protests in several countries.
According to US officials, the operation targeted Revolutionary Guard command facilities, air defense systems, missile and drone launch sites, and military airfields. The US military said it suffered no casualties and reported minimal damage to its bases despite what it described as “hundreds of Iranian missile and drone attacks.”
Iran retaliated by launching missiles and drones toward Israel and targeting US military installations in Bahrain, Kuwait, Qatar and the UAE. The Emirati government said its air defense systems intercepted dozens of Iranian missiles and drones, but debris from the interceptions caused material damage in Abu Dhabi and Dubai, and at least one civilian, a Pakistani national, was killed. It issued rare emergency alerts urging residents to seek shelter, underscoring how the conflict has rippled far beyond Iran’s borders.
The Israeli military said dozens of Iranian missiles were fired toward Israeli territory, many of which were intercepted. Israel’s Magen David Adom rescue service said a woman in the Tel Aviv area died after being wounded in a missile strike.
