UAE to Invest $1 Billion in Pakistan From Gas to Logistics

Abeer Abu Omar, Bloomberg News

Workers engage in the liquefied natural gas (LNG) ship-to-ship operation at Fauji Oil Terminal & Distribution Co. Ltd. in Karachi, Pakistan, on Friday, June 24, 2022. This is the third time this month that Pakistan failed to complete an liquefied natural gas (LNG) tender for July, and the country’s inability to purchase fuel threatens to exacerbate electricity shortages just as hotter weather boosts air conditioning and power demand. , Bloomberg

(Bloomberg) -- The United Arab Emirates is planning to invest $1 billion in Pakistani companies spanning various sectors, state-run news agency WAM reported Friday.

The investments will cover fields including gas, energy infrastructure, renewable energy, health care, biotechnology, agricultural technology, logistics, digital communications, e-commerce and financial services, WAM said.

Read: Saudi to Extend Oil Loan to Pakistan, Discussing Dollar Deposits

Pakistan has been under fiscal strain this year, turning to the International Monetary Fund for help. Saudi Arabia has already said it will extend an oil-loan facility to the South Asian country and was considering rolling over dollar deposits as Pakistan looks to rein in one of Asia’s highest inflation rates and stave off 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.

Read More: Fitch, Moody’s Expect Pakistan to Get $1.2 Billion From IMF