It is welcome to note that the rich Gulf countries like Saudi Arabia, Qatar etc have been opting for investment in Pakistan. On the one hand, Qatar recently promised to increase migrant workers quota for Pakistanis substantially i.e. to three lakh from the current one and half lakh workers working in Qatar.  This will provide employment to Pakistanis who are faced with severe economic crunch at home due to financial crisis being faced by our country. This enhanced number of workforce will also add to the remittances by Pakistanis earned for the country in this hour of distress when the country is on the verge of default and is making hectic efforts to avoid the default.

Meanwhile, during the visit of Prime Minister Shehbaz Sharif to Saudi Arabia, a new investment package of 5 billion dollars, the reports of international organizations regarding the increase in the growth rate of the economy and the signs of development, the possibility of reducing inflation and interest rates, running at a loss, expectations of improvement in government finances from the privatization of institutions, participation in the IMF program and as a result of reform measures, due to the confidence of local and foreign investors, there was a big wave of growth in the Pakistan stock market.  All previous records were broken. Last week, the benchmark 100 index crossed the 70,000 mark for the first time in history. This week, the 100 ADEX had touched a new high of 69619 points after gaining 1203 points. Last week, the index crossed the 68,000 mark.

The benchmark has increased by 30 thousand points during a year. 33.58 million shares were traded in the stock market at the start of current week.

Due to the boom, 59% share prices increased while the value of shares increased by 1 trillion 38 billion 2 crore 13 lakh 47 thousand 948 rupees.  The total amount of capital was 96 trillion 82 billion 65 crore 58 lakh 18 thousand 912 rupees. A total of 345 companies were traded. Oil and gas stocks remained strong due to the expected Saudi investment in Rekodic. According to experts, the corporate results season has also boosted the market.

The bullish trend in the stock market is certainly a positive sign of progress on the economic front, but the question is whether the stock market will be able to sustain this bullish trend.

Economic pressure can be reduced by using the capital obtained from the stock market in a profitable zone.

The government will also restore the privatization process.

The investment of 25 billion dollars by the Saudi government will be a major step towards the recovery of the country's economy and it will be the largest investment of the Saudi government so far.

Although the Govt has not identified Saudi Arabia's investment plans, Barrick Gold Corporation recently said it would welcome Saudi Arabia as Pakistan's partner in the Rekodic project.

Pakistan's mineral resources are worth $60 trillion, while Recodek believes it is among the world's largest reserves of copper and gold.  The importance of internal and external investment in this regard cannot be denied. In Pakistan, a lot of capital is required for the restoration of decaying industries and for new projects, for which there is a need to give incentives to domestic investors in addition to the help of friendly countries. The previous Caretaker government has done valuable work in this regard.

Last year, the United Arab Emirates has signed memorandums of understanding to invest billions of dollars in various sectors including energy, port operation projects, waste water treatment, food security, logistics, mining, aviation and banking and financial services in Pakistan.

The most important developments were recorded at a ceremony held in Abu Dhabi few months back.  The United Arab Emirates will make a historic investment of 20 to 25 billion dollars in Pakistan, which will pave the way for economic recovery and stability in Pakistan.

Economists and the government functionaries expressed the belief that the bilateral agreements between Pakistan and the UAE have ushered in a new era of regional stability and strategic cooperation. This will soon have a positive impact on the country's economy.  As a matter of fact, the UAE President Sheikh Mohammed bin Zayed Al Nahyan has given a new dimension to bilateral relations by making the agreements possible.

The MoUs signed during the previous Caretaker will help implement various economic initiatives in the country under the Special Investment Facilitation Council.

Kuwait is also keen to invest in Pakistan. Recently, 7 agreements and 3 memoranda of understanding were signed in various sectors including food security, agriculture, hydroelectric power and minerals. Mutual expression of the desire to transform them into partnership by highlighting the importance of historical fraternal relations.

 The most important chapter of the recent endevours is that the National Investment Facilitation Council has been trying to implement the set goals since its inception and the high-level visit to the UAE and Kuwait in reent months is a link in this regard. Its priority goals include agricultural and mineral development and adequate investment in these sectors to meet the challenges faced by electricity is the most urgent need of the hour.  Currently, around one lakh Pakistanis are working in various fields in Kuwait and are sending valuable foreign exchange to the dear country by working hard day and night. After the end of the Iraqi occupation of Kuwait, the engineers of the Pakistan Army played an important role in clearing the mines there.  It may be mentined here that Kuwait was one of the first countries to send aid after the 2005 earthquake. Kuwait is rich in natural oil and gas.

Published in The Daily National Courier, April, 16 2024

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