April 09, 2024 (MLN): Pakistan and Saudi Arabia entered into an agreement to increase Saudi deposits in the State Bank of Pakistan (SBP) from $3 billion to $5bn, Mohammad AlQahtani, CEO Saudi Arabia Holding Co revealed in his latest social media post.
The aforementioned agreement was made during a meeting between Muhammad Shehbaz Sharif, the Prime Minister of Pakistan and Mohammed bin Salman bin Abdulaziz Al Saud, the Crown Prince of Saudi Arabia on April 07, 2024.
The discussions centered on fortifying the fraternal relations between the two brotherly nations and exploring avenues for enhanced collaboration across various sectors.
Emphasis was placed on the Kingdom's supportive role in Pakistan's economy and the mutual desire to strengthen trade and investment ties.
Both parties affirmed their commitment to expediting the first wave of investment package worth $5bn.
Furthermore, Saudi Arabia agreed to inject investments into a new oil refinery and copper mines in Pakistan.
These steps are part of a broader agreement signed earlier, where Saudi Arabia is in talks to invest $21bn in Pakistan by establishing a $14bn oil refinery and $7bn worth of copper mine.
“These investments are seen as a positive step towards strengthening economic relations between Pakistan and Saudi Arabia, supporting Pakistan and creating more job opportunities,” the CEO added.
Moreover, these agreements come at a time when Pakistan is facing a severe economic crisis with high inflation rates and a shortage of foreign exchange reserves.
At the conclusion of the meeting, the Prime Minister of Pakistan extended an invitation to the Crown Prince to undertake an official visit to Pakistan at the earliest convenience, which was accepted by the Crown Prince.
