Prime Minister Muhammad Shehbaz Sharif, after facing significant challenges, inheriting a country on the verge of financial default, has been able to successfully navigate this complex landscape by engaging coalition leaders, the defence leadership and key foreign partners.
As a result, Pakistan is now stable enough to transition smoothly toward a caretaker setup, which will hold the next general election, according to an article published by the Saudi Arab based daily newspaper “Arab News”.
“A new staff-level agreement with the International Monetary Fund, worth $3 billion for a period of nine months, was concluded in June…. and the China-Pakistan Economic Corridor stands revived, while relations with the US are also back on track,” the article said adding most notably, the civil-military collaboration has expanded to the economic sphere, giving renewed momentum to Pakistan’s economic partnership with the leading GCC economies.
Since 2019, Saudi Arabia, China and the UAE have offered concessional loans worth several billion dollars to shore up Pakistan’s foreign reserves. These loans have subsequently been rolled over to meet the IMF demand. The latest IMF deal became possible after Saudi Arabia deposited an additional loan of $2 billion in the State Bank of Pakistan, the daily added.
Writer of the article Dr, Ali Awadh Asseri has served as Saudi Arabia’s ambassador to Pakistan from 2001 to 2009.
The article said the Kingdom has always stood by Pakistan through thick and thin. The Special Investment Facilitation Council offers a viable pathway in this respect. Its establishment indicates that Pakistan’s civilian and military leaders understand the risk of dependency on foreign loans. And they are preparing to lay down a solid economic base through attracting investment from friendly countries.
The article added that political instability results in frequent changes of government and the consequent lack of continuity in economic policies. These issues have plagued major investment commitments by Saudi Arabia, the UAE and Qatar in the recent past. While visiting Islamabad in 2019, Crown Prince Mohammed bin Salman pledged $20 billion of investment in the energy, minerals and mining sectors. Likewise, the UAE and Qatar have committed $9 billion. But these pledges are yet to materialize due to cumbersome procedures and structural impediments.
Going forward, the Comprehensive Economic Partnership Agreement with the UAE needs to be emulated in Pakistan’s trade links with Saudi Arabia and the other GCC members.—APP
