Pakistan has been in the business news this week as numerous MOUs were signed between Saudi Arabia and Pakistan for investments of around $20 billion in Pakistan by Saudi Arabian companies.
The proposed investments include a refinery and petrochemical complex, likely to be spearheaded by Saudi Aramco, in Gwadar, Balochistan. The proposed refinery will be beneficial for both countries as it help reduce Pakistan's growing import bill and will also secure a large market for Saudi Arabia's crude oil.
The investments will also include participation in the country's mining and energy sectors. Companies such as ACWA Power already have strong links with Pakistan and are well positioned to become key players in the power sector in the country.
These investments are in addition to the billions of dollars already committed by China as part of the China-Pakistan Economic Corridor and the recent support pledged by the United Arab Emirates.
These investment commitments are unprecedented and reflect the growing opportunity that Pakistan offers to international investors due to its large domestic market, cheaper labour and input costs and access to some of the world's largest markets through its strategic location.
China has already invested $19 billion in Pakistan over the past five years and it has plans to invest billions of more dollars to develop industrial zones as part of $60 billion China-Pakistan Economic Corridor (CPEC) project.