That the delegation of Saudi businessman had official sanction was shown by its being led by the Saudi Assistant It is the fourth high-level contact between the two countries, which started with Prime Minister Shehbaz Sharif’s visit to Saudi Arabia for a bilateral visit in April, and which was followed not just by Saudi Foreign Minister Faisal bin Farhan Al-Saud to Pakistan the same month, but by Mr Sharif going back to Saudi Arabia to attend the World Economic Forum summit just recently. This hectic activity is partially explained by the preparations that are being made for Saudi Crown Prince and Prime Minister Muhammad Bin Salman’s planned visit to Pakistan, but also by the major investments planned by Saudi Arabia in Pakistan.
The Saudis are expected to invest $25 billion in Pakistan, most of it in a refinery in Gwadar and the rest in the Reko Diq project, where it is expected that Saudi Arabia will buy in. This is apart from the $3 billion that Saudi Arabia already has on deposit with the State Bank of Pakistan, and the $5 billion in other investments Saudi businessmen are supposed to make. The sums are large enough to change the economic dynamic between the two countries. Uptil now, Saudi Arabia has seen Pakistan as a supplier of labour, and perhaps of halal foods, but only now is it seeing it as an investment destination. It is to be noted that it is only of late that Saudi Arabia has seen the need for investing. So far, Saudi Arabia used its money much more muscularly, in a straightforward cash-for-influence arrangement. However, it may learn that investments gain influence which is more lasting than cash grants.
It is perhaps of value that Mr Sharif has shown understanding of what the government could do. He told a reception for the visiting delegation on Sunday that it would give them the best facilities possible, and ensure ease of doing business through the Special Investment Facilitation Council. He should have added security, for the Saudi interest is focused for the time boeing on Balochistan, which is home both to separatism and sectarianism, not to mention Indian espionage. Chinese investors have already been targeted. It is not expected that Saudi investors will offer as many targets, because even the skilled labour on their projects would not be Saudi.
