DOHA —
Qatar said Wednesday it would invest $3 billion in Pakistan’s debt-ridden
economy in the latest boost by a Gulf Arab state for the ailing South Asian
nation.
اضافة اعلان
Pakistan has
been scrambling for finance in recent months, and the
International Monetary Fund (IMF) is due to meet next Monday to discuss reviving a suspended $6
billion loan program.
The UAE this
month said it would invest $1 billion in Pakistan and, according to reports,
Saudi Arabia is considering extending an emergency $2 billion loan made last
year.
The latest boost
came in talks between Qatar’s emir Sheikh Tamim bin Hamad Al-Thani and
Pakistan’s Prime Minister Shahbaz Sharif.
The emir
“stressed the importance of the brotherly and strategic relations between the
two countries” and the need to bolster their economic partnership, an official
Qatari statement said.
“In this regard,
the
Qatar Investment Authority announced its intention to invest $3 billion in
various commercial and investment sectors in the Islamic Republic of Pakistan,”
it added.
The statement
said the two leaders also discussed cooperation in “defense” and “sports”.
But it did not
confirm reports that Pakistan would send troops to Qatar for security during
the football World Cup that starts November 20.
Last week, the
Pakistan government said it had approved a deal with Qatar on the “modalities
for deployment of troops for security assistance” during the World Cup.
Assistance from
Gulf nations and a $2.5 billion loan from China has helped Pakistan stave off
the worst of an economic crisis that has seen annual inflation rise above 20
percent.
A $6 billion IMF
bailout package signed by former prime minister Imran Khan in 2019 has never
been fully implemented, because the government failed to carry out promised
cuts to subsidies and to improve revenue collection.
But the economy
has shown recent signs of life. The rupee has strengthened and the stock market
has made gains in the past two weeks.
Analysts say
that
Pakistan’s problems stem from decades of poor economic management by
successive governments and military rulers who have failed to tackle corruption
and widespread tax avoidance.
The IMF
executive board is however expected to renew the crucial loan deal next week,
analysts said.
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