Saudi Crown Prince Begins Asia Tour With $20 Billion Pakistan Investment Pledge

February 18, 2019 Updated: February 18, 2019

ISLAMABAD—Crown Prince Mohammed bin Salman on Feb. 17 said Saudi Arabia has signed investment agreements worth $20 billion during his high-profile visit to Pakistan.

Kicking off his tour of South Asia and China with a far higher Pakistan investment than expected, the crown prince said the $20 billion figure represents only the start of an economic tie-up that would bring the historic Muslim allies even closer.

“It’s big for phase 1, and definitely it will grow every month and every year, and it will be beneficial to both countries,” said the crown prince.

“We have been a brotherly country, a friendly country to Pakistan. We’ve walked together in tough and good times, and we (will) continue.”

Prime Minister Imran Khan and Pakistan’s army chief Qamar Javed Bajwa greeted Prince Mohammed on the red carpet of a military airport in the garrison town of Rawalpindi, before Khan personally drove the crown prince to the capital Islamabad.

“Saudi Arabia has always been a friend in need, which is why we value it so much,” said Khan, while seated next to Prince Mohammed. “I want to thank you for the way you helped us when we were in bad situation.”

Saudi Arabia has in recent months helped keep Pakistan’s economy afloat by propping up its rapidly dwindling foreign exchange reserves with a $6 billion loan, giving Islamabad breathing room as it negotiates a bailout with the International Monetary Fund.

Islamabad has shown appreciation by treating Prince Mohammed’s trip as the biggest state visit since Chinese leader Xi Jinping in 2015, soon after Beijing announced plans to invest tens of billions of dollars on infrastructure in Pakistan as part of China’s global Belt and Road initiative.

He had also planned to visit Indonesia and Malaysia during the tour, but those trips have been postponed, according to Malaysian and Indonesian officials.

In Pakistan, most of the agreements signed focused on energy projects, including a $10 billion refinery and petrochemicals complex in the coastal city of Gwadar, where China is building a port. Memorandums of understanding were also signed for investments in minerals and agriculture, Khan said.

The two nations’ relationship has in the past centered on oil-rich Saudi Arabia backing Pakistan’s economy during difficult periods, and in return Pakistan’s powerful army lending support to Saudi Arabia and its royal family.

 

By Drazen Jorgic & Asif Shahzad

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