Qatar’s state-owned fund would invest $3 billion in Pakistan, according to an official announcement from the ruler’s office on Aug 24.
The announcement was issued by the Emiri Diwan, the emir’s administrative office, as Prime Minister Shehbaz Sharif conducted official talks with Qatari Emir Sheikh Tamim bin Hamad al-Thani in Doha, following a meeting with officials from the sovereign fund the day before. The $450 billion Qatar Investment Authority expressed an “aspiration to invest $3 billion in various commercial and investment sectors in the Islamic Republic of Pakistan.”
How would it help Pakistan:
The investment from the Gulf country is intended to help Pakistan overcome the growing gap between dollar inflows and outflows, which is causing a protracted balance-of-payments issue. The dollar scarcity has depreciated the local currency and reduced the central bank’s foreign exchange reserves, which have fallen to $7.9 billion at the last count.
Why it matters:
According to Bloomberg, Qatar is considering significant investments in the airports of Islamabad and Karachi, as well as holdings in the renewable energy, power, and hospitality industries.