ISLAMABAD: Qatar's state-owned investment authority has announced that it will invest USD 3 billion on commercial and investment sectors in cash-strapped Pakistan, as Prime Minister Shehbaz Sharif held talks with Qatari Emir Sheikh Tamim bin Hamad al-Thani in Doha.
Sharif's visit to Qatar comes ahead of an International Monetary Fund meeting next week that is expected to approve more than USD 1 billion in financing that has been stalled since the beginning of the year.
Qatar's Amiri Diwan, the administrative office of the Emir, on Wednesday made the announcement following a meeting Prime Minister Sharif had with the sovereign fund officials a day ago, the Dawn News reported.
The USD 450 billion Qatar Investment Authority announced its "aspiration to invest USD 3 billion in various commercial and investment sectors in the Islamic Republic of Pakistan," the statement said.
The investment from the Gulf nation is expected to help Pakistan bridge the widening gap between the inflows and outflows of dollars that's resulting in a persistent balance-of-payments crisis.
The dollar shortage has weakened the local currency and caused a drawdown on the central bank-held foreign exchange reserves, which dropped to USD 7.9 billion at the last count.
Earlier this week, State Bank of Pakistan (SBP) Acting Governor Murtaza Syed told analysts that the country would receive USD 2 billion from Qatar in the next 12 months.
Although the Qatari statement didn't mention if the pledged investment was in addition to USD 2 billion indicated by the SBP's acting chief, analysts believe the two amounts would likely overlap.
Qatar is a major supplier of LNG to Pakistan on a long-term contract basis. It's also sponsoring one of the two upcoming LNG terminals in Karachi.
Meanwhile, a statement from the prime minister's office said Sharif and Qatar's emir agreed to increase the bilateral trade, deepen collaboration in agriculture and food sectors and boost cooperation in energy, renewable energy, tourism and hospitality segments. They also agreed to expand cooperation in defence, aviation and maritime sectors.
Sheikh Tamim reassured Sharif of Qatar's commitment to forging a stronger economic partnership with Pakistan.
The premier thanked the emir for Qatar Investment Authority's readiness to invest USD 3 billion in various commercial and investment sectors in Pakistan. Saudi Arabia and the UAE have also indicated to provide USD 1 billion each in oil purchase financing, according to Dawn.