A record investment package being prepared by Saudi Arabia for Pakistan will likely provide welcome relief for its cash-strapped Muslim ally, while also addressing regional geopolitical challenges, analysts say.
At the heart of the investment is a reported $10 billion refinery and oil complex in the strategic Gwadar Port on the Arabian Sea, the ultimate destination for the massive multi-billion dollar China Pakistan Economic Corridor, which lies not far from the Indo-Iranian port of Chabahar.
Two Saudi sources have confirmed to AFP that heir apparent to the Gulf kingdom's throne, Crown Prince Mohammed bin Salman, will visit Islamabad shortly, without giving a date.
And a number of major investment deals are expected to be signed during a visit, officials from both countries have told AFP.
Riyadh and Islamabad, decades-old allies, have been involved for months in talks to hammer out details of the deals in time for the high-profile visit.
"The outcome of the talks so far has been very positive and this is going to be one of the biggest-ever Saudi investments in Pakistan," a Pakistani senior finance ministry official told AFP.
"We hope that an agreement to this effect will be signed during the upcoming visit of the Saudi crown prince to Pakistan," said the official, requesting anonymity.
The Wall Street Journal reported last month that both Saudi Arabia and the United Arab Emirates, Islamabad's biggest trading partner in the Middle East, have offered Pakistani Prime Minister Imran Khan some $30 billion in investment and loans.
Riyadh investments are expected to provide a lifeline for Pakistan's slumping economy which was downgraded in early February by S&P ratings agency from a B to a B-, Saudi economist Fadhl al-Bouenain said.
"Saudi investment to Pakistan comes within an economic aid package aimed at relieving the stress of external debt and a shortage of foreign currency, besides boosting the sluggish economy," Bouenain told AFP.
The OPEC heavyweight also aims to achieve strategic and commercial goals with investments in infrastructure and refinery projects, he said.
Saudi Arabia and its Gulf partner, the UAE, have already deposited $3 billion each in Pakistan's central bank to help resolve a balance of payments crisis and shore up its declining rupee.
They have also reportedly deferred some $6 billion in oil imports payments as Islamabad has so far failed to secure fresh loans from the International Monetary Fund.
Khan has already visited Riyadh twice since taking office in July and in October attended a prestigious investment conference widely boycotted by other political and economic figures after the murder of journalist Jamal Khashoggi.
Khan also visited Saudi rivals Qatar and Turkey, as well as China seeking investments.
"One of the goals for Saudi Arabia expanding investments in refining worldwide is to secure market share and sustainable exports in the face of international competition," Bouenain said.
Saudi Energy Minister Khalid al-Falih visited Gwadar in January and inspected the site for the proposed oil refinery at the deep sea port, just 70 kilometres (45 miles) away from its Iranian competitor, Chabahar.
He was quoted by local media as saying the kingdom was studying plans to construct a $10 billion refinery and petrochemicals complex in Gwadar.
Like most oil suppliers, the world's top crude exporter has been investing heavily in refinery and petrochemicals projects across the globe to secure long-term buyers of its oil.
A pipeline from Gwadar to China would cut the supply time from the current 40 days to just seven, experts say.
Developed as part of China's Belt and Road Initiative with investments worth some $60 billion, Gwadar is being billed as a regional industrial hub of the future, easily accessible for Central Asia, Afghanistan, the Middle East and Africa.
"Pakistan needs a rich partner to enter as a third party besides China, capable of injecting needed cash," Bouenain said.
But so far China has rejected other partners for the corridor that seeks to connect its western province Xinjiang with Gwadar, including Saudi Arabia and UAE, said James M. Dorsey, a senior fellow at Singapore's S. Rajaratnam School of International Studies.
This is despite calls by Khan "for the Chinese investments to be restructured to include agriculture and job-creation sectors and not only in infrastructure", Dorsey told AFP.
Any Saudi investment in Gwadar will also have geopolitical dimensions, Dorsey said.
Iran late last year inaugurated Chabahar which provides a key supply route to landlocked Afghanistan and allows India to bypass its historic enemy Pakistan.
India has seen Chabahar as a key way both to send supplies to Afghanistan and to step up trade with Central Asia as well as Africa.
But Riyadh is not expected to get involved in any Indo-Pakistani rivalry and the kingdom also has major strategic energy deals with New Delhi, where demand for oil is growing fast.
Indeed in April, the Saudis signed a $44 billion deal to build a huge refinery and petrochemicals complex in western India.
Mega Saudi Investment deals expected during Crown Prince's visit
Mega Saudi Investment deals expected during Crown Prince's visit
- The Kingdom is building a $10 billion refinery and petrochemicals complex in Gwadar
- Pakistan takes KSA as third partner in multi-billion dollar CPEC project
New-look Pakistan squad announced for West Indies Test series
- Pakistan will host West Indies for the first time in 19 years, with both Tests held in Multan
- Shan Masood is retained as skipper despite Pakistan losing both the Tests in South Africa
ISLAMABAD: Pakistan selectors Saturday recalled opener Imam-ul-Haq in a new look squad for the two-match Test series against the West Indies starting next week.
The 29-year old Imam has played 24 Tests for Pakistan but was dropped over poor form after a 3-0 defeat in Australia early last year.
The selectors have also named three uncapped players in opener Muhammad Hurraira, wicketkeeper Rohail Nazir and pacer Kashif Ali on the back of their good performances in domestic matches.
Pakistan will host the visitors for the first time in 19 years, with both Tests held in Multan, starting from January 17 and January 25.
Shan Masood is retained as skipper despite Pakistan losing both the Tests in South Africa last week.
Besides Masood, Saud Shakeel (vice-captain), Babar Azam, Kamran Ghulam, Khurram Shahzad, Mohammad Rizwan, Noman Ali, and Salman Ali Agha kept their places from the South Africa series.
Off-spinner Sajid Khan and mystery spinner Abrar Ahmed have been recalled to partner with left-arm spinner Noman Ali.
Noman and Sajid took 29 wickets in Pakistan’s 2-1 win over England last year.
Injured opener Saim Ayub is also left out of the Pakistan squad for the West Indies Tests.
Squad: Shan Masood (captain), Saud Shakeel (vice-captain), Abrar Ahmed, Babar Azam, Imam-ul-Haq, Kamran Ghulam, Kashif Ali, Khurram Shahzad, Mohammad Ali, Muhammad Hurraira, Mohammad Rizwan, Noman Ali, Rohail Nazir, Sajid Khan, Salman Ali Agha.
Efforts underway to free atomic energy workers held by Pakistani Taliban — police
- TTP kidnapped more than a dozen Pakistan Atomic Energy Commission workers from Lakki Marwat this week
- Police say the militant network has presented demands that are being evaluated by officials and tribal elders
PESHAWAR/KARCHI: Police in northwestern Khyber Pakhtunkhwa province said on Saturday efforts were being made to secure the safe release of kidnapped workers of the Pakistan Atomic Energy Commission (PAEC) after a banned militant network released a video featuring some of them while listing demands for their release.
The Pakistani Taliban kidnapped more than a dozen workers of the sensitive government agency responsible for nuclear energy projects from the volatile Lakki Marwat district on Thursday.
Eight of them were later released through joint efforts by tribal elders amid a search operation conducted by police and security forces in the dense forest area where the militants had reportedly taken them.
While the government did not issue a statement on the incident, Shahid Marwat, a police spokesperson in the district, confirmed that a group of nearly 18 “civilians” working on “atomic and mining projects” had been kidnapped by armed gunmen. The militants later shared their credentials on social media, identifying them as PAEC employees.
Speaking to Arab News on Saturday, Marwat said the militants had made demands for the release of the abductees, adding that local elders and officials from security forces and the district administration were holding meetings to ensure their safe release.
“Local elders and police and security officials are evaluating the kidnappers’ demands,” he said. “Efforts are on to secure their safe release at the earliest. So far, officials are busy tackling the issue through negotiations.”
Asked if the video released by the Pakistani Taliban, also known as the Tehreek-e-Taliban Pakistan (TTP), featured the kidnapped PAEC workers, he responded affirmatively.
In the video, a man flanked by two others mentions the date, saying: “Today, it is 11th January 2025; this is our third consecutive day in the [Pakistani] Taliban captivity.”
“Day before yesterday, reports emerged that the mujahideen [freedom fighters] had released ‘these people,’ while the reality is that even right now, 10 of us are in their custody.”
He then read out the TTP demands, requesting the government to “immediately” accept them.
The demands included the release of militants arrested in Lakki Marwat, the release of families of militants allegedly in government custody, a commitment not to demolish the homes of militants and their relatives in the future, and compensation for the homes already demolished.
Lakki Marwat is situated on the edge of Pakistan’s northwestern tribal districts bordering Afghanistan, where the TTP has frequently targeted security force convoys and check-posts, in addition to engaging in targeted killings and kidnappings of law enforcers and government officials in recent months.
Pakistan’s religious affairs minister meets Egyptian grand mufti, highlights need for interfaith dialogue
- Both officials seek eradication of militant violence and sectarianism for the establishment of peace
- They also agree that the two countries should focus on enhancing economic, trade and cultural ties
ISLAMABAD: Federal Minister for Religious Affairs Chaudhary Salik Hussain on Saturday called for interfaith and intercultural dialogue to address growing intolerance worldwide and the challenges posed by militancy in Muslim states during a meeting with Egypt’s Grand Mufti, Dr. Nazir Mohamed Ayad.
Pakistan has made a conscious effort to promote religious pluralism and faith-based tourism in recent years, welcoming Buddhist monks as well as Hindu and Sikh devotees from India and beyond. However, the country continues to grapple with significant challenges, as religious minorities often complain of discrimination and marginalization.
The Pakistani minister’s meeting with Egypt’s grand mufti in Islamabad also sought the “eradication of terrorism, sectarianism, and the establishment of peace,” according to a statement released by the ministry.
“In light of the challenges and circumstances that Muslim countries are currently facing, there is a need to promote religious harmony, tolerance, and unity,” it continued. “There is an urgent need for dialogue between religions and cultures to establish peace in the world. An attitude of tolerance and respect is an essential component of Islamic teachings.”
Both sides agreed to strengthen bilateral cooperation to foster religious harmony, peace, and tolerance globally. They also decided to enhance economic, trade, and cultural ties.
The grand mufti highlighted the Muslim world’s struggles against militant violence, suggesting joint efforts to combat extremism.
He reiterated his country’s plan to establish a campus of Al-Azhar University, one of the world’s oldest centers of Islamic education, in Pakistan.
He also proposed that Pakistani scholars visit Egypt to benefit from the institution’s teachings and expertise.
Pakistan, China reaffirm commitment to ‘CPEC 2.0’ focusing on industrialization
- Since 2013, CPEC has seen tens of billions of dollars funneled into massive transport, energy and infrastructure projects in Pakistan
- CPEC 2.0 will focus on industrialization and special economic zones as well as on clean energy, agriculture and livelihood projects
ISLAMABAD: Pakistan and China have resolved to undertake high-quality of development of a second phase of the China-Pakistan Economic Corridor, or CPEC 2.0, that would focus on industrialization, Pakistan’s foreign ministry said on Thursday.
The statement came after a 5th meeting of the CPEC Joint Working Group on International Cooperation and Coordination (JWG-ICC) was held in Beijing. It was co-chaired by Pakistan’s Foreign Secretary Amna Baloch and Chinese Vice Foreign Minister Sun Weidong.
China and Pakistan enjoy a close strategic partnership, with the latter’s location on the Arabian Sea providing Beijing an overland route toward the Gulf of Aden and onto the Suez Canal, and enabling Chinese ships to avoid the potential chokepoint of the Malacca Strait.
During the delegation level talks, the two sides reviewed with satisfaction the progress made since the 4th meeting of the JWG-ICC held in Islamabad in January 2024, according to the Pakistani foreign ministry.
“Both sides reaffirmed their commitment to the high quality development of CPEC 2.0, with its emphasis on industrialization and Special Economic Zones (SEZs) as well as on clean energy, agriculture and livelihood projects,” it said in a statement.
“The meeting also acknowledged the pivotal role of CPEC in promoting regional connectivity, win-win cooperation and common prosperity, including through partnerships with other countries.”
Since its initiation in 2013, CPEC has seen tens of billions of dollars funneled into massive transport, energy and infrastructure projects in Pakistan. But the undertaking has been hit by Islamabad struggling to keep up its financial obligations as well as attacks on Chinese targets by militants.
During a visit to China in June last year, Pakistan Prime Minister Shehbaz Sharif had announced both countries had mutually decided to enhance economic cooperation that would enter its next phase with five new corridors.
The Chinese vice foreign minister said 2.0 would focus on growth, livelihood and innovation, and reinforce Pakistan’s national development framework centered on ‘5 Es,’ representing exports, e-Pakistan, energy, environment and equity.
Foreign Secretary Baloch described CPEC as the cornerstone of China-Pakistan economic cooperation as well as a “shining symbol” of the enduring friendship between the two countries.
Both sides expressed resolve to deepen cooperation in the fields of media, cultural exchanges and people-to-people linkages to accelerate the building of a “China-Pakistan Community of Shared Future in the New Era.”
Separately, both countries also held a 4th round of Pakistan-China Bilateral Political Consultations (BPC), at which they reaffirmed commitment to further deepening their partnership.
The two sides also exchanged views on a range of regional and international issues and agreed to further enhance their mutual coordination and consultations, according to the Pakistani foreign ministry.
“Both sides agreed to further deepen their mutual partnerships in sectors such as information technology, agriculture and clean energy, driven by the concept of win-win cooperation and pursuit of people centric, inclusive development,” it said.
“The two sides underscored the need to strengthen their mutual coordination at the multilateral forums, including at the United Nations Security Council.”
Later, the foreign secretary also held a meeting with Executive Vice Foreign Minister Ma Zhaoxu and exchanged views on Pakistan-China relations as well as regional and international issues of common interest.
Northwestern Pakistani province says 10 workers killed in coal mine collapse in country’s southwest
- The mine in Sanjdi coal field in Pakistan’s southwestern Balochistan province collapsed after a methane gas explosion on Thursday
- Mines in Balochistan are known for hazardous working conditions and poor safety standards, where deadly incidents are not uncommon
ISLAMABAD: Ali Amin Gandapur, chief minister of Pakistan’s Khyber Pakhtunkhwa province, said on Saturday that 10 residents of his province were among 12 workers killed in a coal mine collapse in the country’s southwest.
The mine in the Sanjdi coal field in Pakistan’s southwestern Balochistan province collapsed after a methane gas explosion on Thursday and a dozen miners were trapped inside it, according to the Balochistan mining department.
Rescue teams from the Balochistan mining department and the Provincial Disaster Management Authority (PDMA) recovered bodies of four miners on Friday, following an hours-long effort.
In a statement issued from his office, CM Gandapur said ten of the deceased miners hailed from the Shangla district of the Khyber Pakhtunkhwa province.
“We share the grief of the bereaved families,” the chief minister was quoted as saying by his office.
On Friday, Balochistan Chief Mines Inspector Abdul Ghani said the workers had been digging coal at 4,000 feet inside the mine, adding that the entire mine had caved in due to the intensity of the gas explosion.
“The mining department will conduct a thorough investigation to assess what kind of safety measures were put in place by the private mine owners,” he told Arab News.
Mines in Balochistan, which are operated by private companies under lease agreements with the government, are known for hazardous working conditions and poor safety standards, where deadly incidents are not uncommon.
At least 82 coal miners working on different projects were killed in Balochistan in 46 accidents last year, according to the Balochistan mining department.
