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Pakistan has initiated discussions with Saudi Arabia to attract investment in various projects, including the Diamer-Basha dam, as part of a $5 billion investment package.
The government plans to offer Saudi Arabia two options for investment in the Diamer-Basha project: a $1.2 billion equity partnership or arranging $2.3 billion in debt financing. The dam, with a capacity to generate 4,500 megawatts of electricity and store 6.4 million acre-feet of water, faces a financing gap of $3.5 billion.
Saudi delegation, headed by Foreign Minister Prince Faisal bin Farhan Al Saud, visits Pakistan for a two-day investment discussion. Proposed projects include a 600MW solar power plant, an iron ore scheme in Chiniot, railway network construction, and tourism projects.
The visit aims to finalize projects for Saudi investment, with no formal agreements expected to be signed during this trip. However, it is seen as a significant step in enhancing bilateral economic cooperation.
Pakistan has long struggled to secure financing for the Diamer-Basha dam, facing opposition from India and challenges with international donors. The project, proposed under the China-Pakistan Economic Corridor (CPEC), failed to materialize due to funding issues.
Despite hurdles, Pakistan remains optimistic about Saudi investment, viewing the visit as a crucial milestone in economic cooperation.
The visit will also include discussions on defense cooperation, with Saudi Arabia exploring opportunities for investment in defense production. This signals a broader scope for economic and strategic partnership between the two countries.
Pakistan seeks to utilize Saudi investment to improve infrastructure, drive economic growth, and enhance bilateral relations between the two nations.
