Doha August 24 2022: Qatar’s sovereign wealth fund may invest about $3 billion in key sectors of Pakistan’s economy, according to people familiar with the matter, as the gas-rich Gulf state extends its support to the cash-strapped South Asian nation.
The $445 billion Qatar Investment Authority is evaluating strategic investments in the country’s main airports in
Islamabad and Karachi, as well as in the renewable energy, power and hospitality sectors, the people said, asking not to be identified because the information is private.
The investments from the QIA may partly overlap with the $2 billion in bilateral support Qatar has already planned for Pakistan, one of the people said. The fund may end up investing more or less than $3 billion depending on the asset valuations and opportunities, the people said, without sharing a time frame.
A representative for the QIA declined to comment.
Pakistan’s Prime Minister Office didn’t immediately respond to a request for comment.
Default Risk
Qatar is pledging its support for Pakistan to help ease the country’s funding crunch and the consequent risk of a default. Prime Minister Shehbaz Sharif has been visiting Qatar ahead of an IMF board meeting next week that could lead to the release of $1.2 billion in financing. Arab nations committed to supporting the country only after it secured a program from the Washington-based lender.
IMF Is Said to Seek Assurance on Saudi Funding to Pakistan The South Asian nation will also get $1 billion in oil
financing from Saudi Arabia and a similar amount in investments from the United Arab Emirates. Gulf states often provide a mix of deposits and investment pledges when they provide aid to states.
The Pakistan rupee is the best performer globally this month and has gained 9% since dropping to a record low last
month as worries over a possible default fade, according to data tracked by Bloomberg.
