Saudi Arabia could raise investment in Pakistan to $10 billion

Crown Prince Muhammad bin Salman is considering increasing Saudi Arabia’s financial assistance and investments in Pakistan, the state-run Saudi Press Agency reported Tuesday. 

The Saudi Fund for Development will study whether it should raise its deposit in Pakistan’s central bank from $3 billion to $5 billion, according to the report.

The same report added that Riyadh could also increase its investment in Pakistan to $10 billion. 

The cash would help bolster response to the devastating floods last year, which have left millions homeless and Pakistan’s economy reeling. 

Pakistan’s economy was struggling as Islamabad was unable to come to an agreement with the International Monetary Fund, and was then made much worse with the devastating floods that inundated the country and cut economic growth by half. 

Pakistan has since relied on international aid to help recover, and recently secured more than $9 billion in pledges at an international conference in Geneva. 

Saudi Arabia’s Fund for Development provides loans and grants to developing countries to aid its allies or cement new relationships. 

Saudi Arabia and Pakistan have had strong military, economic and political ties for decades. Most recently, Pakistan’s army chief General Amin Munir met with Muhammad bin Salman on Tuesday and discussed ways to improve the countries' bilateral relationship. His visit followed a similar tour of the Gulf kingdom by Pakistan's Prime Minister Shahbaz Sharif, which aimed to secure further funding for the cash-strapped country.