Pakistan will receive $3 billion in deposits and direct investments from Qatar, QNA reported on Monday. This comes a day after Emir Sheikh Tamim bin Hamad concluded his visit to Islamabad, and both the countries signed several memoranda of understanding for trade and investment, tourism and business and for cooperation in financial intelligence.
“Want to thank the Emir of Qatar HRH Sheikh Tamim Bin Hamad Al Thani for announcing US $3 Billion in #deposits and direct #investments for #Pakistan and for #Qatar’s affirmation to further develop relations between the two countries,” Abdul Hafeez Shaikh, the Pakistani prime minister’s adviser on finance, said in a tweet on Monday.
Doha’s cash injection brings the Gulf state’s total investment in Pakistan to $9 billion, according to Al Jazeera.
Last month, Pakistan reached an agreement in principle with the International Monetary Fund for a three-year, $6 billion bailout package. The financial aid is an attempt to help the country strengthen its slowing economy, improve public finances and reduce debt. On June 5, the Pakistan military also announced cuts in its defence budget, though it did not reveal the extent of the cutback.
The Pakistani government has also received financial aid from Saudi Arabia and the United Arab Emirates. Saudi Arabia gave a $3 billion loan and a similar amount every year in oil supply on deferred payments. The United Arab Emirates also announced a $3 billion loan package.
Pakistan’s increasing foreign debt has widened the deficit in its current account. The country’s currency has also been losing its value since 2017. In 2018, the country also reduced its investment in the China Pakistan Economic Corridor.
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