Qatar Investment Authority to invest $3b in Pakistan insolvent economy
Qatar’s Emir, Sheikh Tamim bin Hamed al-Thani meets with Pakistan’s Prime Minister Shehbaz Sharif in Doha, Qatar August 24, 2022.
Qatar’s Emiri Diwan Wednesday confirmed that the Qatar Investment Authority (QIA) aims to invest $3 billion in Pakistan. Qatar is lending support to the South Asian nation’s insolvent economy.
“The Qatar Investment Authority announced its aspiration to invest $3 billion in various commercial and investment sectors in the Islamic Republic of Pakistan,” the Emiri Diwan said, without giving details.
Pakistan is in economic default and faces a balance of payments crisis. Foreign reserves have dropped as low as $7.8 billion, barely enough for more than a month of imports. It is also contending with a widening current account deficit, weakening rupee currency, and inflation that exceeded 24% in July. Qatar’s Emiri Diwan confirmed on Wednesday saying that the investment is to lend support to the country’s struggling economy.
According to Bloomberg, the gulf nation’s sovereign wealth fund was analyzing strategic investments in Pakistan’s vital economic sectors. The main airports in Islamabad and Karachi, as well as in the renewable energy, power, and hospitality sectors.
The publication wrote that the Qatari sovereign wealth fund could somewhat overlap with the already planned fund worth $2 billion in support from Qatar to Pakistan.
Also Read: Aims to invest $3 billion in Pakistan: Qatar
“The fund may end up investing more or less than $3 billion depending on the asset valuations and opportunities, the people said, without sharing a time frame,” boomberg wrote.
Prime Minister Muhammad Shehbaz Sharif thanked His Highness Amir of State of Qatar for the Qatar Investment Authority (QIA)’s readiness to invest US$ 3 billion in various commercial and investment sectors in Pakistan.
— Prime Minister's Office (@PakPMO) August 24, 2022
PM Shahbaz expected to offer stakes to Gulf nations
Earlier, PM Shahbaz was expected to provide stakes to the gulf nation in its state-owned enterprises (SOEs). Including a share in the state-owned Roosevelt Hotel in New York and Pakistan International Airlines running at a loss.PM’s aides added that he also hoped to make energy deals.
For the liquefied natural gas (LNG) bought from Qatar under long-term deals. Pakistan — a major importer of LNG from the gulf country — also aimed to seek a deferred payment plan. The country has signed two long-term LNG supply deals with the gulf nation through which up to nine cargoes a month will arrive in Pakistan.
During his meeting with Qatar’s Ameer, PM Shahbaz agreed to encourage cooperation in various sectors. Prime Minister Shahbaz’s visit to Doha came ahead of the International Monetary Fund’s (IMF)IMF executive board meeting, which is slated for August 29 in Washington. During the meeting, As a condition to bag the loan. IMF has asked Pakistan to seek $4 billion from friendly nations. Pakistan has managed to get funds through Saudi Arabia, UAE, and Qatar.
Saudia Arabia will be providing $1 billion in oil financing to Pakistan, while the United Arab Emirates United Arab will make investments of a similar amount.
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