According to state-run media reports, Pakistan’s foreign investment increased by 48% during the first quarter of the current fiscal year. A total of USD 26.8 million was contributed during this time by Saudi Arabia and the United Arab Emirates.
The Special Investment Facilitation Council is a joint civil-military organisation in Pakistan established in 2023 to accelerate foreign investment decisions in important economic sectors such as mining, tourism, agriculture, and minerals.
The ongoing economic crisis in Pakistan, which had driven the nation to the verge of a sovereign default, coincided with this initiative.
An important USD 3 billion bailout from the International Monetary Fund (IMF) in 2023 helped to alleviate the crisis and stop additional economic collapse.
China accounted for USD 404 million of foreign investments in the first quarter, followed by the United Arab Emirates (USD 25 million) and Saudi Arabia (USD 128 million), according to a breakdown released by Radio Pakistan. Other noteworthy donors were the United States (USD 28 million), the United Kingdom (USD 72 million), and Hong Kong (USD 98 million).
“A significant increase of 48 per cent has been seen in foreign investment in Pakistan in the first quarter of the current fiscal year, reflecting the effective strategies of the Special Investment Facilitation Council,” Radio Pakistan reported.
Shehbaz Sharif, the prime minister of Pakistan, held discussions with the leaders of Saudi Arabia and Qatar during a recent trip to discuss expanding trade, investment, and energy cooperation.
Notably, 27 memorandums of understanding and agreements totalling USD 2.02 billion were signed by Saudi and Pakistani companies in October 2024.
Recently, when Sharif visited the Kingdom, the two nations decided to raise this amount to USD 2.08 billion.
Due to its proximity, which lowers transportation costs and promotes trade exchanges, the UAE continues to be Pakistan’s third-largest trading partner, behind the United States and China. It is also a significant export market.