What if Pakistan purchase oil in riyal currency from Saudi Arabia

[FuturePAF]

the saudi strategy is sound. it has two drawbacks - 1. it does not employ saudi labor
2. no one has managed investments in perpetuity making money. sooner or later you make mistakes and money is lost

The Norwegians invested their oil money from the last 40 years; some $1.5 Trillion dollars into the US stock market. The dividends alone on that investment are in the tens of billions annually, and they are able to live off that investment today. The countries in the developing world are higher risk, such as Pakistan, but they potential for return on investment is also high. Saudi pressure to get government to reform so that they can receive investments will benefit all parties and other global investors. The more stable these countries become, the more they will be geared towards productive human development, and less towards conflicts for resources.

Investments will earn long term ties, that will bind.

Sorry. The link is

https://vision2030.gov.sa/en/programs/NTP

You need to download different programs to read all of it.

My reason to ask you to kindly read it was because you were suggesting what Saudis should do; such as investing in Pakistani Agriculture & in Pakistani Dams etc.

My point is that Saudis already have the 'blueprint' of a long term development strategy in place whereby they are investing heavily in the Quality of life programs, Financial sector development, Housing programs, National transformation program, Public investment fund program, Fiscal balance program, Privatization program, National companies promotion program, National industrial development program, Strategic partnership program, Hajj & Omra program, Human capital development program and National character enrichment program.

This is such a comprehensive project that IMHO there would not be any genuine interest on their part to invest in any other program which falls beyond the scope of their 'Strategic Partnership Program' as included in their 'Vision 2030'. We must remember that Saudi Arabia is our friend but only as far as their national interest demands.

I agree the Saudis will invest in what they feel is their national interest. They know they have to switch over from an oil based economy to more modern industrial and technological economy. As Saudi Vision 2030 pans out they will have to train or bring in skilled labor. My point, was ROI could be higher in investing in SEZs in a number of allied nations, utilizing the skilled labor already there, and not have to build the majority of the infrastructure to maximize their profits.

 

[nahtanbob]

The Norwegians invested their oil money from the last 40 years; some $1.5 Trillion dollars into the US stock market. The dividends alone on that investment are in the tens of billions annually, and they are able to live off that investment today. The countries in the developing world are higher risk, such as Pakistan, but they potential for return on investment is also high. Saudi pressure to get government to reform so that they can receive investments will benefit all parties and other global investors. The more stable these countries become, the more they will be geared towards productive human development, and less towards conflicts for resources.

Investments will earn long term ties, that will bind.

Norwegians played the long game. it is too late for others to mimic the same strategy.
Total assets are $958 billion - 60% are in equities

keep in mind USA social security trust fund has $2.79 trillion in US treasuries

 

[FuturePAF]

Norwegians played the long game. it is too late for others to mimic the same strategy.
Total assets are $958 billion - 60% are in equities

keep in mind USA social security trust fund has $2.79 trillion in US treasuries

It may be to late to get the same returns in the US market, but it may not be the same story in other nations. Under the right management, resource rich nations with a decent amount of FDI can be come thoroughly modern economies. This can be especially true in nations with a well trained work force and a relatively young population, as was the case with China a generation ago.

India, Pakistan, Bangladesh still have the potential for a similar but slightly smaller growth pattern over the next 30 years. Saudi investment and world class management could utilize this labor better where they are, rather than bringing them to a new city, and investing in the the infrastructure to house, educate, and transport them.

In the end, its the Saudis money, and if the give jobs to more Pakistanis, Pakistan will benefit.

 

[ARMalik]

It is the fault of the Pak establishment that they are unable to think outside the box. There are other options available. The trade can also be done in Chinese Yuan aka Petro Yuan which is convertible into Gold. But the idiots in Pakistan's financial establishment have held the country hostage to US dollar.

Also, the countries like China are now enforcing 'Battery powered' cars. What this means that less use of petrol. Cars can easily run on gas, Ethanol and other fuels. In Brazil most cars run on Ethanol which is produced by Brazil using sugarcane. But the illiterate junkies sitting in Pakistan's ruling Junta/establishment have destroyed this country through corruption, incompetency and keep the people of Pakistan hostage.

 

[Mr ambassador]

OPEC countries should have their own currency for oil trade and pegged it's exchange rate with gold. It will be a last nail on the coffin of Dollar.

 

[nahtanbob]

It is the fault of the Pak establishment that they are unable to think outside the box. There are other options available. The trade can also be done in Chinese Yuan aka Petro Yuan which is convertible into Gold. But the idiots in Pakistan's financial establishment have held the country hostage to US dollar.

Also, the countries like China are now enforcing 'Battery powered' cars. What this means that less use of petrol. Cars can easily run on gas, Ethanol and other fuels. In Brazil most cars run on Ethanol which is produced by Brazil using sugarcane. But the illiterate junkies sitting in Pakistan's ruling Junta/establishment have destroyed this country through corruption, incompetency and keep the people of Pakistan hostage.

what can you do with yuan ? can you buy property in china ? or operate a bank account in china as a foreigner

 

[Goku]

what can you do with yuan ? can you buy property in china ? or operate a bank account in china as a foreigner

Nope ,land in China is state owned , there's a reason Chinese elites are buying property outside China