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Qatar Investment Authority considering about $3bn investment in Pakistan: report

hydrabadi_arab

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Qatar Investment Authority (QIA), one of the largest sovereign wealth funds in the world, may invest about $3 billion in different sectors of Pakistan's economy, reported Bloomberg, citing people familiar with the matter.

The report said the $445-billion QIA is evaluating strategic investments in the country's main airports in Islamabad and Karachi, as well as in the renewable energy, power and hospitality sectors, the people said, not quoted because the information is private.

The development comes days after it was reported that Pakistan will receive about $2 billion from Qatar in bilateral support to help ease its financing crunch, according to the acting governor of the State Bank of Pakistan (SBP) Dr Murtaza Syed.

“The investments from the QIA may partly overlap with the $2 billion in bilateral support Qatar has already planned for Pakistan," Bloomberg quoted one of the people as saying.

“The fund may end up investing more or less than $3 billion depending on the asset valuations and opportunities," the people said, without sharing a time frame, according to the report.

Prime Minister Shehbaz Sharif, who is currently an official visit to Qatar, on Tuesday invited investors from the Middle Eastern ally to invest in Pakistan’s energy, aviation, agriculture, livestock, maritime, tourism and hospitality sectors.

The premier, in a meeting with the highest officials of QIA, had highlighted Pakistan’s liberal and business-friendly investment policies.

He also urged Qatari investors to explore the opportunities presented by the China-Pakistan Economic Corridor (CPEC) aimed at promoting regional connectivity and mutual prosperity.

Terming Pakistan a priority country, QIA officials expressed their keen interest and readiness to actively pursue investment opportunities in the country.

Pakistan is desperately seeking dollar inflows, with the International Monetary Fund (IMF) Executive Board set to announce its decision on the country's combined seventh and eighth reviews under the Extended Fund Facility (EFF) on August 29.
 

Wood

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not really they are selling assets shares to Qatar at low and rest is given because our forces will provide security for Qatar football fifa.
Are there competing offers to Qatar with a higher bid? If the assets are publicly listed, then is Qatar paying lesser than what a share is traded at market today?

Pakistani forces providing security for Qatar is no different from American forces providing security for Saudi Arabia.
 

hydrabadi_arab

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not really they are selling assets shares to Qatar at low and rest is given because our forces will provide security for Qatar football fifa.

Asset? PIA debt is over Rs500 billion and increasing every year. Its liability and the sooner Pakistan sell of it assets the better it will be. Federal govt need to reduce its size and expenditure.
 

Jango

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Are there competing offers to Qatar with a higher bid? If the assets are publicly listed, then is Qatar paying lesser than what a share is traded at market today?

Pakistani forces providing security for Qatar is no different from American forces providing security for Saudi Arabia.

There was no bidding process.

There was no sale of the shares. The whole damn law was changed so that the government could give the shares at whatever price it deems to whoever in the world it wants to, without any open or transparent process.

then is Qatar paying lesser than what a share is traded at market today?

YES! Miftah even admitted to this, he said around 5-10% less, but the exact figure is to be determined.
 

Wood

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There was no bidding process.

There was no sale of the shares. The whole damn law was changed so that the government could give the shares at whatever price it deems to whoever in the world it wants to, without any open or transparent process.

YES! Miftah even admitted to this, he said around 5-10% less, but the exact figure is to be determined.
The urgency of the situation was the reason for legislating around the bidding process. I've said this many times now and you must have surely read it. Yet the same cyclical argument against asset monetization continues. Let me state it again:

a) Pakistan needed money urgently to avoid default.
b) No one was willing to hand cash to Pakistan once more because Pakistan has not paid what it borrowed previously.
c) Best possible deal was the asset monetization offer from UAE.
d) The government had to amend necessary laws to fast track the process.

In tough circumstances, the government will make tough decisions. I recall the bitter bill that Imran had to swallow when he took a U-turn on his position of not approaching IMF. Please consider this amendment of law as a similar necessity that the government had to address.

As for the price of the sale, I'm not aware of any figures that have been agreed to. This has not been posted on this forum. Generally, the assets that are to be monetized may have liabilities that would deflate the perceived value of sale. Even Air India's privatization was criticized as people were not happy with the price offered. But the reality was that there were a lot of liabilities that had to be accounted for. Price negotiation after all comes down to who has higher leverage. Please share the source for your information about price of sale if possible.
 

Corruptistan

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Selling out the country for cheap by the “neutrals”. What is exactly breaking news here?

Pakistan keeps being hijacked and as such remains rotten to the core.
 

maithil

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Declaring intention to invest is good. But actual investment and transfer of money thereafter takes time. Sometimes years.
 

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