ISLAMABAD: Saudi Arabia will activate a deferred payment facility for oil imports to Pakistan starting July 1, Pakistan’s top finance official said on Wednesday, a move that will see Islamabad receive $3.2 billion per year for three years.
The facility is badly needed at a time when Pakistan’s rupee reached a new record low this week, selling at 153 against the dollar in the interbank market on Monday to continue a slide that saw it lose more than 5 percent last week. The devaluation comes after Pakistan signed a $6 billion loan accord with the International Monetary Fund which has harsh reform conditions attached to it.
“1st July 2019 KSA is activating the deferred payment for petroleum products facility of $ 275mn per month amounting to $3.2 Billion per year for 3 years,” Dr. Abdul Hafeez Shaikh, the Pakistani prime minister’s adviser on finance, said in a Twitter post. “This will strengthen Pakistan’s Balance of Payments position.”
“Would like to Thank The Crown Prince of Saudi Arabia, His Highness Muhammad Bin Salman for his continuous support for the people of Pakistan,” Shaikh said.
Last year, Saudi Arabia agreed to give Pakistan $3 billion in foreign currency support for a year and a further loan in deferred payments for oil imports.
Pakistan’s central bank raised its key interest rate to 12.25% on Monday, warning that already soaring inflation risked further rises on the back of higher oil prices and reforms required for the new IMF bailout.
The 150 basis points increase follows a preliminary agreement last week with the IMF for a $6 billion loan that is expected to come with tough conditions, including raising more tax revenues and putting up gas and power prices. It was the eighth time the central bank has increased its main policy rate since the start of last year.
With economic growth set to slow to 2.9% this year from 5.2% last year, according to IMF forecasts, the rate rise adds to pressure on Prime Minister Imran Khan, who came to power last year facing a balance of payments crisis that has now forced his government to turn to the IMF.
Higher prices for basic essentials including food and energy has already stirred public anger but the central bank suggested there was little prospect of any immediate improvement.
Saudi, Pakistani investors to continue talks today on day two of investment conference
High-level Saudi business delegation arrived in Pakistan on Sunday to attend two-day investment conference
Pakistan, Saudi Arabia have been working closely in recent weeks to increase bilateral trade, investment deals
Updated 8 sec ago
Shahjahan Khurram
ISLAMABAD: Pakistani government officials and investors are expected to continue discussions with a high-level Saudi business delegation on enhancing economic cooperation between the two countries today, Tuesday, on the second day of the Pakistan-Saudi Arabia investment conference.
A 50-member delegation, led by the Kingdom’s Assistant Minister of Investment Ibrahim Al-Mubarak, arrived in Pakistan on Sunday to attend a two-day investment conference, with representatives of some 30 Saudi firms from the fields of IT, telecom, energy, aviation, construction, mining exploration, agriculture and human resource development.
Pakistan and Saudi Arabia have been working closely in recent weeks to increase bilateral trade and investment deals, with Crown Prince Mohammed bin Salman last month reaffirming the Kingdom’s commitment to expedite an investment package of $5 billion.
Prime Minister Shehbaz Sharif said on Monday night that the two countries would sign “solid agreements” worth billions of dollars, saying his government was ready to remove hurdles in the way of speedy development of projects.
“That time is coming very fast, when we will, God willing, witness agreements, solid agreements worth billions of dollars. That will set the ball rolling,” Sharif said at a dinner hosted in honor of the visiting Saudi delegation.
Al-Mubarak described Pakistan as a “strategic” partner and friend of the Kingdom.
“The relationship with Pakistan has always been strong, but we look for it to be even stronger, and we can do great things together. I am sure we can achieve both countries’ aspirations and visions,” he said.
The Saudi business delegation’s visit comes on the heels of one by Sharif to Riyadh from Apr. 27-30 to attend a special two-day meeting of the World Economic Forum (WEF).
On the sidelines of the WEF conference, the Pakistani PM met and discussed bilateral investment and economic partnerships with the crown prince and the Saudi ministers of finance, industries, investment, energy, climate, and economy and planning, the adviser of the Saudi-Pakistan Supreme Coordination Council and the presidents of the Saudi central bank and Islamic Development Bank.
This was Sharif’s second meeting with the crown prince in a month. Before that, he also met him when he traveled to the Kingdom on April 6-8. The Saudi foreign minister was also in Pakistan last month, a trip during which Pakistan pitched projects worth at least $20 billion to Riyadh, according to the Pakistani foreign ministry.
Pakistan and Saudi Arabia enjoy strong trade, defense, and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and serves as a top source of remittances to the cash-strapped South Asian country.
Cash-strapped Pakistan desperately requires foreign investment as it tries to navigate an economic crisis that has resulted in a chronic balance of payments crisis for the country.
ISLAMABAD: Pakistan’s State Minister for Information Technology (IT) Shaza Fatima Khawaja on Monday met with representatives of Saudi Arabian IT firms, who are currently visiting Pakistan, and urged them to explore investment opportunities in Pakistan’s IT and telecom sector, the Pakistani IT ministry said.
These IT professionals are part of a high-level Saudi delegation, led by the Kingdom’s Assistant Minister of Investment Ibrahim Al-Mubarak, which arrived in Pakistan on Sunday.
“We are dedicated to offering a stable and supportive framework,” Khawaja told the Saudi delegates. “We encourage all Saudi companies to explore opportunities for partnerships and joint ventures.”
She urged the Saudi delegates to capitalize on the synergies between Pakistan’s technical proficiency and the access to the Saudi market, accompanied by the potential for valuable investments.
Pakistan and Saudi Arabia have been closely working in recent weeks to increase bilateral trade and investment deals, with Crown Prince Mohammed bin Salman last month reaffirming the Kingdom’s commitment to expedite an investment package of $5 billion.
Also on Monday, the Saudi assistant minister of investment said Pakistan was a “high-priority economic investment and business opportunity” for Saudi Arabia. He was addressing a two-day Pakistan-Saudi Arabia investment conference in Islamabad, with a focus on business-to-business engagements.
“To the Saudi government and Saudi companies, Pakistan is considered a high-priority economic investment and business opportunity,” he said. “We believe in the great potential of Pakistan’s economy, demographics and talent as well as location and natural resources.”
The Saudi business delegation’s visit comes more than a week after Prime Minister Shehbaz Sharif visited Riyadh to attend a special two-day meeting of the World Economic Forum, where he met top Saudi officials on the sidelines.
Pakistan and Saudi Arabia enjoy strong trade, defense, and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and serves as a top source of remittances to the cash-strapped South Asian country.
Saudi Manara Minerals’ team in Pakistan for talks on Reko Diq mine stake, document shows
Reko Diq in southwestern Pakistan is considered one of world’s largest underdeveloped copper-gold areas
Manara officials are part of large delegation of Saudi investors, companies that arrived in Islamabad on Sunday
Updated 29 min 34 sec ago
Reuters
ISLAMABAD: Executives from Saudi Arabian mining company Manara Minerals are in Islamabad to continue talks about buying a stake in Pakistan’s Reko Diq gold and copper mine, a Pakistan government document showed on Monday.
The mine, located in Pakistan’s restive southwestern Balochistan province, is considered one of the world’s largest underdeveloped copper-gold areas by global mining company Barrick Gold Corp, which owns the project jointly with Pakistan.
The Manara officials are part of a large delegation of Saudi investors and companies that arrived in Islamabad on Sunday, according to a document seen by Reuters listing officials in the delegation.
The document listed Manara Minerals’ general manager as wanting to “continue the negotiations on the Reko Diq project.”
Barrick has said it will invest up to $10 billion to develop the project.
Manara Minerals, a joint venture between state-owned Saudi miner Ma’aden and Saudi Arabia’s Public Investment Fund (PIF), declined to comment.
Pakistan’s Petroleum Minister Musadik Malik and Commerce Minister Jam Kamal said on Monday that the Saudi delegation, representing three dozen investors and companies, will meet Pakistani companies to explore investment in sectors including agriculture, mining, aviation and livestock.
They did not name the Saudi companies.
Manara’s acting CEO Robert Wilt told Reuters in an interview in January that the company was in talks to potentially buy a stake in the Reko Diq mine.
Bloomberg has reported that Manara was initially interested in investing $1 billion to take a minority share in the copper mine.
Malik, the petroleum minister, who was also appointed by Prime Minister Shehbaz Sharif as a focal person for Saudi investments, did not respond to a Reuters request for a comment.
The Saudi delegation’s trip to Islamabad follows Saudi Foreign Minister Prince Faisal bin Farhan bin Abdullah’s visit to Islamabad last month, when he was briefed by Pakistani authorities on various avenues to invest in the country.
Pakistan, which is trying to navigate a path to economic recovery after securing an IMF bailout, desperately needs foreign investment to help fight a chronic balance of payments crisis.
ISLAMABAD: Pakistani startups, MyTM and Zindigi, have partnered with JS Bank and MasterCard to unveil the Sullis Hajj Card, a “revolutionary” financial product designed to provide pilgrims a cashless experience during their spiritual journey, a senior MyTM official said on Monday.
MyTM, a Pakistan-based startup with operations in the Kingdom, offers digital payments and financial services, while Zindigi is one of the first fully digital banks of Pakistan that offers unprecedented personalization to its customers.
Traditionally, the Hajj journey involves numerous financial transactions from visa fees to accommodation and transportation. The Sullis Hajj Card encapsulates the concept of internationally enabling pilgrims to manage their expenses without the need to carry cash.
“For the first time in Pakistan, this initiative enables a cashless Hajj in the first phase and later on Umrah experience, offering ease of transactions with reduced charges and almost no taxes otherwise applicable on all traditional cards during international transactions,” Jawad Mahmood, chief executive officer of MyTM Saudi Arabia, told Arab News on the sidelines of the Sullis Hajj Card launch in Islamabad.
Officials from Pakistani startup MyTM, JS Bank, Zindigi, and Mastercard launched the Sullis Hajj Card in Islamabad, Pakistan on May 6, 2024, to provide pilgrims with a cashless experience during the annual pilgrimage. (AN Photo)
Through this card, he said, MyTM, Zindigi, JS Bank, and MasterCard were collaborating to offer pilgrims favorable exchange rates, easy money withdrawal and a wide acceptability across Saudi Arabia and other parts of the world.
Hajj is one of the five pillars of Islam and requires every adult Muslim to undertake the journey to the holy Islamic sites in Makkah at least once in their lifetime if they are financially and physically able.
Pakistan has a Hajj quota of 179,210 pilgrims this year. Of them, 63,805 pilgrims will be performing the pilgrimage under the government scheme, while the rest would be accommodated by private tour operators, according to the Pakistani religious affairs ministry.
The Hajj card will be launched for public on May 15, with applications opening through the MyTM app, according to the MyTM Saudi Arabia official. The innovative financial product is a great example of moving forward on Pakistan’s national financial inclusion policy and Saudi Arabia’s Vision 2030 as both governments are currently focusing on digital economy.
“Right now, a lot of people who are going there face a lot of issues sometimes they have some currency exchange issues, sometimes they get high rates and sometimes they lose their money,” Mahmood said, adding the initiative would not only enhance convenience but also increase financial security of pilgrims performing Hajj and Umrah.
Rizwan Saeed Qureshi, an additional secretary for the Middle East in Pakistan’s foreign ministry, termed the Hajj card a “good omen” for Pakistan’s fintech sector.
“This is the first-ever pilot to the best of our understanding for cashless Hajj to start with and certainly subsequently Umrah,” he told Arab News.
“Hopefully it will succeed as a pilot and then expand in terms of its implementation, in terms of its application, in terms of its coverage to the entire Hajj operation.”
This year’s pilgrimage is expected to run from June 14 till June 19.
ISLAMABAD: Pakistan and Saudi Arabia will sign “solid agreements worth billions of dollars” soon, Prime Minister Shehbaz Sharif said on Monday during a dinner held in honor of a high-level Saudi business delegation visiting the Pakistani capital of Islamabad.
A 50-member delegation, led by the Kingdom’s Assistant Minister of Investment Ibrahim Al-Mubarak, arrived in Pakistan on Sunday, with representatives of some 30 Saudi firms from the fields of IT, telecom, energy, aviation, construction, mining exploration, agriculture and human resource development.
Speaking at the dinner, Sharif expressed satisfaction over what he called “tangible progress” at a Pakistani-Saudi Arabia investment conference held in Islamabad earlier in the day.
“Today, B2B (business-to-business) interactions have been most productive,” he said. “That time is coming very fast, when we will, God willing, witness agreements, solid agreements worth billions of dollars. That will set the ball rolling.”
Sharif said his government was determined to remove hurdles in the way of the speedy achievement of targets.
“And I want to assure you that in that, we are fully resolved and committed,” the PM said, adding that the Saudi side had expressed confidence in the working of Pakistan’s Special Investment Facilitation Council (SIFC), set up last year to oversee all foreign investments in the country.
Speaking at the dinner, the Saudi assistant investment minister said Pakistan was a “strategic” partner and friend.
“The private sectors have interacted very quickly. We have spoken to them, only a few days after we have spoken to them, everybody showed interest,” he added. “The relationship with Pakistan has always been strong, but we look for it to be even stronger, and we can do great things together. I am sure we can achieve both countries’ aspirations and visions.”
Pakistan and Saudi Arabia have been working closely in recent weeks to increase bilateral trade and investment deals, with Crown Prince Mohammed bin Salman last month reaffirming the Kingdom’s commitment to expedite an investment package of $5 billion.
The Saudi business delegation’s visit comes on the heels of one by Sharif to Riyadh from Apr. 27-30 to attend a special two-day meeting of the World Economic Forum.
On the sidelines of the WEF conference, the Pakistani PM met and discussed bilateral investment and economic partnerships with the crown prince and the Saudi ministers of finance, industries, investment, energy, climate, and economy and planning, the adviser of the Saudi-Pakistan Supreme Coordination Council and the presidents of the Saudi central bank and Islamic Development Bank.
This was Sharif’s second meeting with the crown prince in a month. Before that, he also met him when he traveled to the Kingdom on April 6-8. The Saudi foreign minister was also in Pakistan last month, a trip during which Pakistan pitched projects worth at least $20 billion to Riyadh, according to the Pakistani foreign ministry.
Pakistan and Saudi Arabia enjoy strong trade, defense, and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and serves as a top source of remittances to the cash-strapped South Asian country.
INVESTMENT CONFERENCE
Speaking at the investment conference on Monday morning, Al-Mubarak said this was his second visit to Pakistan in two weeks and many influential leaders from globally renowned Saudi companies were part of his delegation.
“To the Saudi government and Saudi companies, Pakistan is considered a high-priority economic investment and business opportunity,” Al-Mubarak said.
“Today, we want to connect you [Pakistan] all to Saudi companies who desire to continue building their international presence, for Saudi Arabia’s ambitions do not stop at our borders and we would like to see Pakistan as one of our leading international partners,” the Saudi official added.
“So, this gathering provides a wonderful opportunity for them [Saudi companies] to develop a deeper understanding of the great opportunities available for investment in Pakistan and to learn about related regulations, requirements, and incentives.”
Addressing a press conference in Islamabad, Petroleum Minister Dr. Musadik Malik said 125 Pakistani companies were negotiating with the Saudi companies who were visiting Islamabad.
“First, there were government-to-government agreements during the visit of the Saudi foreign minister [last month] and now there will be business-to-business agreements,” he said.
“To facilitate the visiting Saudi companies, the Pakistani commerce ministry has affiliated one focal person with each Saudi company.”
Minister for Commerce Jam Kamal Khan said high officials of more than 32 Saudi companies were in Pakistan.
“Pakistani companies are present here, in the energy sector, in the food sector, in the construction sector, in the renewable section, in the ports and shipping section, and the IT services and general services,” Khan told reporters.
He said the visit by the Saudi delegation was “just the beginning” and now a Pakistani delegation would visit the Kingdom nect “to move forward toward the implementation phase.”
