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.”