Qatar to invest $3 bn in beleaguered Pakistan economy

Qatar said  it would invest $3 billion in Pakistan's debt-ridden economy in the latest boost by a Persian Gulf state for the ailing South Asian nation.

Pakistan has been scrambling for finance in recent months, and the International Monetary Fund is due to meet next week to discuss reviving a suspended $6 billion loan programme.

The United Arab Emirates this month said it would invest $1 billion in Pakistan and, according to reports, Saudi Arabia is considering extending an emergency $2 billion loan made last year.

The latest boost came in talks between Qatar's emir Sheikh Tamim bin Hamad Al Thani and Pakistan's Prime Minister Shahbaz Sharif.

The emir "stressed the importance of the brotherly and strategic relations between the two countries" and the need to bolster their economic partnership, an official Qatari statement said.

"In this regard, the Qatar Investment Authority announced its intention to invest $3 billion in various commercial and investment sectors in the Islamic Republic of Pakistan," it added.

The statement said the two leaders also discussed cooperation in "defence" and "sports".

Assistance from Persian Gulf nations and a $2.5 billion loan from China has helped Pakistan stave off the worst of an economic crisis that has seen annual inflation rise above 20 percent.

Analysts say that Pakistan's problems stem from decades of poor economic management by successive governments and military rulers who have failed to tackle corruption and widespread tax avoidance.