Saudi Arabia and Pakistan Strengthen Economic Ties with $5 Billion Agreement

Saudi Arabia and Pakistan have agreed to boost Saudi deposits in the State Bank of Pakistan by $2 billion, raising the total to $5 billion. This agreement follows a meeting between Prime Minister Shehbaz Sharif and Crown Prince Mohammed Bin Salman in Makkah, where they discussed enhancing economic cooperation.

The $5 billion plan includes investments in projects such as a new oil refinery and copper mines. Saudi Arabia had previously pledged to invest $25 billion in Pakistan over five years, focusing on sectors like energy, IT, minerals, defense, and agriculture.

Specifically, the Saudis are expected to invest $5 billion in the minerals sector, with a significant portion allocated to the Reko Diq Copper-Gold Project in Balochistan. These investments aim to strengthen economic ties between the two countries, support Pakistan's economy, and create job opportunities.

PM Shehbaz hailed the agreement as historic and a milestone in the bilateral relationship. The investments come at a crucial time for Pakistan, which is grappling with economic challenges like high inflation and foreign currency shortages. The support from Saudi Arabia is seen as vital for Pakistan's economic stability and growth.