The Saudi magnanimity
The Saudi investment to the tune of $2.2 billion is a jiff of fresh air. It is good to note that the Kingdom has kept its word of buckling up Pakistan's economy. Twenty-seven MoUs – signed in Islamabad in the presence of Saudi Investment Minister Khalid Bin Abdul Aziz Al Falih – have harnessed the path of inflow of international investors, as Riyadh had rightly spotted the avenues in industry, agriculture, IT, food, education, mining, health, petroleum and energy. The Saudi profile will surely generate a snowball reaction as Pakistan is ripe for investment, especially with the completion of the first phase of CPEC and initiation of the industrialisation process.
Saudi Arabia has been a pillar of support for Pakistan, and its benevolence has enabled it to clinch a deal with the IMF and get its existing loans rolled over. Moreover, the Kingdom's eagerness to make the best use of opportunities – which the minerals in Balochistan and the newly-built port at Gwadar have to offer – has cemented renewed bilateralism. Pakistan is rich in resources for such a cooperation, and food supplies top the list. Also, the role that SMEs are playing in churning out competitive entrepreneurship is appreciable.
It is appreciated that Al Falih came in with a high-powered 135 member delegation which provided them with a fresh perspective on policies of SIFC that is striving for big-ticket investments. The need of the hour is to maintain the momentum and let business personnel from both the sides intermingle at ease, and ensure that bureaucratic bottlenecks are done away with. Foreign investors usually complain of obstacles that come their way and are also sceptical of a lawful cover to their money in case of litigation.
A number of quick-fix measures such as slashing the interest rate to 17.5% and tightening the macro-economic indicators have come as great incentives. The onus is now on Islamabad to see to it that the MoUs are realised and contribute to growth and export-base of the economy. The royals have put in their ton.