Prime Minister Shehbaz Sharif returned to Islamabad but was not empty-handed. In addition to a $600 million investment package from Saudi Arabia, Mr Sharif also managed to get Qatar to pledge three billion dollars across various sectors in Pakistan.
This investment from Qatar is vastly different from the ones received by Saudi Arabia. This is largely due to the fact that the Saudi investment plans were focused primarily on the upgrade and construction of refineries in Pakistan. However, Doha’s vision is to hold a more diverse set of investments.
This is likely to spell great news for Pakistani businesses, especially those involved in the provision of airport services, renewable energy and hospitality. The inflow of Qatari Riyals will benefit businesses as these foreign funds will allow for the expansion of the scope of current projects.
Lawmakers in Islamabad have been especially successful in attracting foreign direct investments (FDI) in the past few months. In the first quarter of FY 24-25 alone, FDI had jumped up by 48 per cent. With the Qatari deal secured, experts predict the FDI levels will continue to stay at a respectable level in the second quarter.
Qatar’s investment in Pakistan’s economy and, ultimately, businesses shows the great level of faith they have in the economy. The government has been making great efforts to made great strides to revive the economy, as all economic indicators seem to be moving in a positive direction.
As per the IMF’s (International Monetary Fund) forecasts, the annual inflation rate is expected to sit at around 9.5 per cent – a stark improvement from the 30.77 per cent rate recorded in 2023. Moreover, the government has gained significant credibility with international investors and lenders, having a fiscal surplus for the first time in 24 years. These statistics have undoubtedly made Pakistan a better destination for investments than last year and investors have taken note of this too.
As such, Qatari investors might consider Mr Sharif’s request in the meetings where he urged them to invest in businesses in Pakistan. The resulting collaboration will likely continue Riyal bankrolling business projects in Pakistan. Moreover, Qatar’s confidence in Pakistan is likely to be shared by other international investors.
Qatar’s latest investment pledge adds to the long line of investments that Islamabad has managed to garner. Can Pakistan, backed by foreign investments, finally claw out and recover from the economic quagmire that it found itself in last year? Time shall tell.
