Pakistan PM Shehbaz Sharif visits Qatar to raise funds for his cash-strapped country

Pakistan Prime Minister Shehbaz Sharif is on a two-day trip to Qatar. The Pakistan PM departed for the west asian country for the first time since assuming office in April, earlier this year. Reportedly, the main agenda of Sharif's visit is to gather funds for his cash-strapped country, going through its worst financial period.

The official statement by the Pakistan PM office also emphasised deepening trade ties between the two countries.

"The two sides will review the entire spectrum of bilateral relations, with a particular focus on advancing energy-related cooperation, deepening trade and investment ties, and exploring greater employment opportunities for Pakistanis in Qatar," read the statement.

Pakistan's economy is in doldrums

As reported extensively by WION, Pakistan's economy is under tremendous debt and needs cash liquidity on an almost urgent basis.

According to several estimates, India's neighbouring country needs at least $41 billion in the next 12 months to fund debt repayments and boost foreign exchange reserves that have fallen to a lowly sum of $7.8 billion.

Standing on the verge of bankruptcy, Pakistan, however, was given a glimmer of hope earlier last month when the IMF decided to resume a 2019 signed $6 billion loan programme.

However, IMF kept a few pre-conditions before Islamabad prior to opening its coffers. Reportedly, Pakistan will have to raise $4 billion from friendly countries to receive the next tranche of payment.

Pakistan had been desperate for funding ever since with its Army chief visiting Washington to lobby for getting the IMF loan approved.

Qatar approves funding

However, good news came on the day Sharif departed for Qatar as the oil-rich country announced that it will provide $2 billion in bilateral support to the South Asian country.

Moreover, Pakistan will also receive $1 billion in oil financing from Saudi Arabia and a similar amount in investments from the UAE, over 12 months.

The next IMF meeting is scheduled to take place on August 29 and with a part of the funding secured, Pakistan PM will be hopeful that the global monetary body releases the funds.

It is pertinent to note that the Pakistan government under PM Sharif has also brought an ordinance which grants it the power to sell state assets such as oil and gas companies to foreign nations without any checks.

Qatar is one of the major oil-producing countries. Thus, experts believe that Sharif may attempt to sell a few state assets to the gulf country, before returning to Islamabad.

(With inputs from agencies)

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