Mubasher: Adding another chapter in Pakistan’s history of using its strategic position to get foreign support, Prime Minister Imran Khan turned to Arab Gulf nations in a bid to shore up the economy.

Saudi Arabia and its ally the UAE offered Pakistan more than $30 billion in loans and investments, Pakistani and Saudi officials said.

Saudi Crown Prince Mohammed bin Salman is set to visit Pakistan next February to sign off Riyadh’s deals.

The round would allow Premier Khan, who took office in July 2018, to delay the painful prospect of borrowing from the International Monetary Fund (IMF).

Discussions with the IMF, which started since last October, are working towards a programme with terms that the government can accept, Finance Minister Asad Umar told The Wall Street Journal (WSJ).

Within the plan, Saudi Arabia would invest $10 billion to build an oil refinery and petrochemicals complex.

Although Pakistan has close relations to Saudi Arabia and the UAE, Islamabad has not received the financial support now being pledged.

The $20 billion investment package from Saudi Arabia would nearly match the amount spent by China in Pakistan in its current infrastructure push.

Khan’s predecessor signed with China on a massive infrastructure plan, a move that led to souring relations with the country’s alliance with the US.

The UAE is also working on a multibillion refinery investment plan, UAE and Pakistani officials said.

Moreover, both of the Gulf nations are set to provide Pakistan immediate loans of as much as $12 billion, according to Pakistani officials.

The promised new loans would offer Islamabad breathing space as it grapples with a balance of payments crisis.

A team from the global fund is set to return to Pakistan for final discussions, so that a programme could be passed by the lender’s board in mid-January.

However, with the Gulf funds, the IMF loan required is now set to become much smaller.