Islamabad, Pakistan — Pakistan Prime Minister Shehbaz Sharif has been on a series of trips over the past three months, trying to persuade China, Saudi Arabia, and the United Arab Emirates to invest in the country as its economy struggles. Last year, under Sharif’s first term as prime minister, the government established a Special Investment Facilitation Council (SIFC) to promote investment in Pakistan. Following visits to Beijing, Riyadh, and Abu Dhabi, the government is hopeful that memorandums of understanding signed during these trips will lead to potential investments in Pakistan. However, analysts warn that attracting foreign direct investment will only be successful if Pakistan can ensure a stable political environment and implement economic reforms.
During his visits to Saudi Arabia, Sharif discussed the possibility of a $5bn investment package. Saudi Arabia has shown interest in investing in various sectors of Pakistan, including an oil refinery project, agriculture, mining, power sector, technology, and aviation. Negotiations for the proposed investment are ongoing. In the UAE, Sharif secured a commitment of $10bn in investments, but details on specific sectors and timelines are yet to be disclosed.
Sharif’s visit to China was considered the most crucial of his trips, as China is a significant investor in Pakistan. Following discussions with Chinese leaders, both countries emphasized enhanced security cooperation and the need to improve the China-Pakistan Economic Corridor. Despite signing multiple MoUs during the visit, concrete agreements on specific projects have not been finalized.
Pakistan has been working to attract foreign investments through the SIFC, but the country’s political instability and economic challenges have hindered progress. Analysts emphasize the importance of domestic reforms to address Pakistan’s economic difficulties rather than relying solely on foreign support. While the recent visits indicate a potential for increased investments in Pakistan, the country must address its internal issues to attract sustainable investments.