ISLAMABAD: Pakistan and Saudi Arabia have signed short-, mid- and long-term investment agreements worth $21 billion during the visit to Islamabad of Saudi Crown Prince Mohammed bin Salman, the Pakistani government said on Monday.
The crown prince is on a two-day visit to Pakistan as part of a rare tour of Asia which includes trips to India and China.
“Pakistan and Saudi Arabia today are entering into a new economic partnership which will lead to shared prosperity, regional stability and mutual respect based on long term investment, strategic and social ties,” the government of Pakistan said in a tweet from its official Twitter account.
The government also provided a breakdown of the seven memorenda of understanding (MoUs) signed between Pakistan and Saudi Arabia on Sunday night.
Short-term projects include two Re-Gasified Liquefied Natural Gas plants for $4 billion, a $2 billion investment by Saudi power producing company ACWA Power in Pakistan’s renewable energy sector and a $1 billion Saudi Fund for Pakistan.
Mid-term projects include $1 billion each for petrochemical and food and agricultural projects. The long-term investments are $10 billion for the construction of the multi-billion-dollar Saudi Aramco oil refinery in Gwadar and $2 billion for the minerals sector.
The total investment comes to $21 billion, according to government figures.
“These agreements will lay the foundation for enhanced economic cooperation between Pakistan and the Kingdom of Saudi Arabia,” Pakistan’s Foreign Office said in a statement shortly after the signing of the agreements in the presence of Pakistani Prime Minister Imran Khan and the Saudi crown prince on Sunday night.
Saudi Arabia and Pakistan are historically close allies, and Riyadh’s investment comes at a time when Islamabad is facing a balance-of-payments crisis and a widening current account and fiscal deficit. Saudi Arabia and the United Arab Emirates have already extended $6 billion ($3 billion each) in cash assistance to Islamabad to stave off its economic meltdown.
In a press conference last week, Pakistani foreign minister Shah Mehmood Qureshi said Saudi Arabia would give Pakistan a total of $9.6 billion in loans and oil on deferred payments in the next three years.
Announcing the Saudi investment in Pakistan, the crown prince said on Sunday night: “It’s big for phase one, and definitely it will grow every month and every year, and it will be beneficial to both countries.”
“I want to thank you for the way you helped us when we were in bad situation,” PM Khan said.
Senior economist Muzamil Aslam said the Saudi investments were “good news for all Pakistanis” and would help stabilize the country’s economy and create job opportunities for skilled and unskilled youth.
“Saudi investment in different sectors will help Pakistan lure businessmen from other countries as well,” he told Arab News. “More Middle Eastern countries, especially the U.A.E., will invest in Pakistan in the coming months and years following the Kingdom.”
Saudi Arabia, Pakistan sign seven investment MoUs worth $21 billion
Saudi Arabia, Pakistan sign seven investment MoUs worth $21 billion
- Short-term projects include $4 billion RLNG plants, $2 billion investment in renewable energy, $1 billion Saudi Fund for Pakistan
- Package also includes $1 billion each for petrochemical and food, agricultural projects, $10 billion oil refinery in Gwadar, $2 billion for minerals sector Aamir Shah
Pakistan, global crypto exchange discuss modernizing digital payments, creating job prospects
- Pakistani officials, Binance team discuss coordination between Islamabad, local banks and global exchanges
- Pakistan has attempted to tap into growing crypto market to curb illicit transactions, improve oversight
ISLAMABAD: Pakistan’s finance officials and the team of a global cryptocurrency exchange on Friday held discussions aimed at modernizing the country’s digital payments system and building local talent pipelines to meet rising demand for blockchain and Web3 skills, the finance ministry said.
The development took place during a high-level meeting between Finance Minister Muhammad Aurangzeb, Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal bin Saqib, domestic bank presidents and a Binance team led by Global CEO Richard Teng. The meeting was held to advance work on Pakistan’s National Digital Asset Framework, a regulatory setup to govern Pakistan’s digital assets.
Pakistan has been moving to regulate its fast-growing crypto and digital assets market by bringing virtual asset service providers (VASPs) under a formal licensing regime. Officials say the push is aimed at curbing illicit transactions, improving oversight, and encouraging innovation in blockchain-based financial services.
“Participants reviewed opportunities to modernize Pakistan’s digital payments landscape, noting that blockchain-based systems could significantly reduce costs from the country’s $38 billion annual remittance flows,” the finance ministry said in a statement.
“Discussions also emphasized building local talent pipelines to meet rising global demand for blockchain and Web3 skills, creating high-value employment prospects for Pakistani youth.”
Blockchain is a type of digital database that is shared, transparent and tamper-resistant. Instead of being stored on one computer, the data is kept on a distributed network of computers, making it very hard to alter or hack.
Web3 refers to the next generation of the Internet built using blockchain, focusing on giving users more control over their data, identity and digital assets rather than big tech companies controlling it.
Participants of the meeting also discussed sovereign debt tokenization, which is the process of converting a country’s debt such as government bonds, into digital tokens on a blockchain, the ministry said.
Aurangzeb called for close coordination between the government, domestic banks and global exchanges to modernize Pakistan’s payment landscape.
Participants of the meeting also discussed considering a “time-bound amnesty” to encourage users to move assets onto regulated platforms, stressing the need for stronger verifications and a risk-mitigation system.
Pakistan has attempted in recent months to tap into the country’s growing crypto market, crack down on money laundering and terror financing, and promote responsible innovation — a move analysts say could bring an estimated $25 billion in virtual assets into the tax net.
In September, Islamabad invited international crypto exchanges and other VASPs to apply for licenses to operate in the country, a step aimed at formalizing and regulating its fast-growing digital market.
