Saudi Arabia is reported to join the multi-billion-dollar China Pakistan Economic Corridor (CPEC) with a US$10 billion investment which is expected to give a major push to the project.
This was stated by ruling Pakistan Tehreek-e-Insaf (PTI)’s Central Deputy Secretary General Usman Dar on Twitter.
With the Islamic Kingdom joining the Belt and Road Initiative (BRI) of the Chinese government, the key stakeholders, Pakistan and China, will speed up the efforts to complete projects as soon as possible.
Reports in media also suggest that Saudia Arabia is going to turn Gawadar into an oil city, which was part of an agreed plan with China. Before striking an agreement with the Saudis, reports say, Pakistani leadership took the Chinese into confidence.
Experts term involvement of KSA into CPEC a big diplomatic success for the newly elected government led by Imran Khan.
The country’s current economic situation, especially depleting foreign exchange reserves, requires immediate financial assistance. The government plans to pay off Rs50 billion to Independent Power Producers (IPPs) and Pakistan State Oil (PSO), as the circular debt, loans and liabilities of the power sector have surged to an all-time high of Rs1,155 billion.