An American private foundation Bill and Melinda Gates recently invested 11 million in a Pakistani startup which is expected to be followed by the United Arab Emirates (UAE) as the state-run news agency WAM reported that the UAE is planning to invest $1 billion in Pakistani companies.
Read more: Bill & Melinda Gates Foundation invests $11 mn in Pakistani start-up
The investment is aimed to discover new investment prospects and areas for cooperation in projects in different fields in order to expand bilateral economic relations which are in favor of both the nations.
Fields of interest for this investment are energy infrastructure, renewable energy, health care, biotechnology, agricultural technology, logistics, digital communications, e-commerce, and financial services.
Pakistan is undergoing economic crisis for which it has knocked the doors of the global lender and the friendly countries. International Monetary Fund (IMF) turned to Saudi Arabia to assure that Pakistan does not face financial gap after the disbursement of funds into the country.
The UAE was more interested in potentially attaining some assets, and Saudi Arabia is willing to provide loans as well as oil on deferred payments.$1 billion.
Read more: Closing the financial gap with $4 billion from friendly countries
Saudi Arabia has already stated that it will extend an oil-loan facility to the South Asian country and is considering rolling over dollar deposits as Pakistan seems to have one of Asia’s highest inflation rates and resist a current-account crisis.
The IMF is seeking assurance from Persian Gulf nations hoping they will follow through with funding commitments before approving a loan to Pakistan, Bloomberg reported earlier. Both Fitch Ratings and Moody’s Investors Service cut the outlook on Pakistan’s credit rating this year.
According to Bloomberg, the IMF is seeking assurances from Persian Gulf governments that they will follow through on funding commitments before authorizing a loan to Pakistan. This year, both Fitch Ratings and Moody’s Investors Service downgraded Pakistan’s credit rating outlook.