THE prime minister concluded a one-day visit to the United Arab Emirates on Thursday, marking the conclusion of the administration’s relentless push to attract Gulf investment to Pakistan. Shehbaz Sharif had a full day in the Emirates, attending a conference on tech collaboration, meeting with Mohamed bin Zayed, the ruler of the UAE, and exchanging notes with other businessmen and officials.
According to Emirati state media, $10 billion has been set aside for investments in Pakistan’s “promising economic sectors,” suggesting that the meeting with MBZ went well. Mr. Sharif has indicated that the UAE may cooperate in the areas of IT, renewable energy, and tourism. In addition, the government has been courting Saudi Arabia; in the last two months, the prime minister has traveled to the kingdom twice, and Saudi ministers and delegations have visited Pakistan to reaffirm Riyadh’s pledge to make investments here. $5 billion in investment has reportedly been promised by the Saudis.
Although the promises made by our Gulf friends are comforting, the multibillion dollar question is when they will actually come to pass. It’s possible that the Saudis and Emiratis are holding off on releasing their own money until the IMF approves the next loan to Pakistan. Despite the fact that the IMF loan has not yet been approved, Fund representatives have called the talks with the government “fruitful” and stated that “significant progress” has been made in the direction of an agreement at the staff level. Hopefully, the investment agreements signed with Gulf partners will begin to take more solid form once the loan is approved in the near future.
Regrettably, even our traditional allies are hesitant to invest in this country and are waiting for approval from international financial institutions because of our previous financial carelessness and indiscipline. Before sending us a check, IFIs keep an eye on our financial transactions with our overseas partners. By improving financial management, the government can shift this unfavorable perception and help the state transition to a sustainable economic model.The prime minister brought up these uncomfortable topics when he declared that the “begging bowl” had been “broken” during his brief visit to the United Arab Emirates. More than 240 million people in Pakistan are hoping that this is true. We need to learn to live within our means, tax the untaxed domestically, and make good use of the anticipated foreign investment if we are to actually escape the bonds of financial dependency.
We should not waste this chance to put our house in order because decades of extravagant living, largely the result of the nation’s elite, have brought us to this sorry state. We need to continue seeking foreign investment and provide an environment free from bureaucratic roadblocks that is conducive to business. To draw in foreign capital, profit repatriation should also be made easier. There must be
