Premium Content

FDI and the Significance of Economic Reforms in Pakistan

Print Friendly, PDF & Email


During the Prime Minister’s recent visit to Saudi Arabia, a significant development unfolded with the announcement of an agreement between the two nations. This agreement, which aims to expedite the first wave of a $5 billion Saudi investment package for Pakistan, is not just another promise of investment. What makes it stand out is the issuance of a joint statement by both countries, a clear sign of Saudi Arabia’s earnestness in this proposed investment.

It’s noteworthy that in recent years, even countries with friendly ties like Saudi Arabia appeared to be growing impatient with investing in Pakistan. However, the recent endorsement from the Crown Prince indicates a potential shift. This could be attributed to the role of the Special Investment Facilitation Council (SIFC), which seems to have played a significant part in restoring confidence in Pakistan’s ability to provide a stable platform for investment.

Initially, it was reported that Saudi Arabia was considering a substantial investment of $25 billion in Pakistan for a range of projects. The Special Investment Facilitation Council (SIFC) was set to be the primary channel for this investment. The funds were expected to be allocated to the agricultural sector, mining, and natural resources in Pakistan. The council’s strategy has been particularly focused on corporate farming and mining, especially in newly discovered regions.

While the news of Saudi Arabia’s investment to bolster Pakistan’s reserves is undoubtedly positive, it’s crucial to recognize the government’s pivotal role. The government must not get complacent but instead, it needs to take the lead in fostering this investment and addressing the economy’s systemic issues. With the IMF’s support and the backing of Saudi Arabia, Pakistan can secure its economic stability for the foreseeable future. However, reforming Pakistan’s governance is significant for sustainable economic growth. Pakistan needs structural reforms to attain economic and financial targets.

Please, subscribe to the YouTube channel of

Leave a Comment

Your email address will not be published. Required fields are marked *

Latest Videos