Qatar considers $3 billion Pakistan investment
Business
Qatar considers $3 billion Pakistan investment
DOHA (Dunya News) – Qatar on Wednesday considers to invest $3 billion in key sectors of Pakistan’s economy as the gas-rich Gulf state extends its support to the cash-strapped South Asian nation, Bloomberg reported.
According to people familiar with the matter, the Qatar Investment Authority is evaluating strategic investments in the country’s main airports in Islamabad and Karachi, as well as in the renewable energy, power and hospitality sectors.
The investments from Qatar may partly overlap with the $2 billion in bilateral support Qatar has already planned for Pakistan, one of the people said, asking not to be identified because the information is private. 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.
The Qatari ruler’s office confirmed the plan to invest in Pakistan in a statement posted on its website. The decision came during a meeting between ruler Sheikh Tamim Bin Hamad Al Thani and Pakistan Prime Minister Shehbaz Sharif.
Qatar is pledging its support for Pakistan to help ease the country’s funding crunch and the consequent risk of a default. Prime Minister Sharif has been visiting Qatar ahead of an IMF board meeting next week that could lead to the release of $1.2 billion in financing. Arab nations committed to supporting the country only after it secured a program from the Washington-based lender.
Pakistan will also get $1 billion in oil financing from Saudi Arabia and a similar amount in investments from the United Arab Emirates. Gulf states often provide a mix of deposits and investment pledges when they provide aid to states.
The Pakistan rupee is the best performer globally this month and has gained 9% since dropping to a record low last month as worries over a possible default fade.
