Implications of Bin Salman's visit to Pakistan

Saudi Prince Mohammad bin Salman’s historical and highly significant tour to Pakistan,(from Pakistan’s point of view) was finally finished. In the present condition for a pauper like Pakistan, Saudi Arabia has emerged as a big savior.  The crown prince’s visit was delayed by a day due to unspecified reasons and was linked to heightened tensions between India and Pakistan due to the Pulwama terror attack that martyred 44 CRPF personnel. Saudi Arabia said it stood with India’s fight against terrorism and censured Pakistan-based terror group Jaish-e-Mohammed (JeM) terming the attack ‘cowardly’.

In addition to key members of his cabinet, including Petroleum Minister Khalid al-Falih, the crown prince was accompanied by a number of Saudi businessmen, who are expected to hold meetings with Pakistani counterparts ahead of a planned investor conference.

The agony of Pakistan's unrestraint can only be understood by the fact that Imran Khan, Pakistan's prime minister, started counting his wants and desires in a public show. At the state dinner, Khan publicly requested the crown prince to allow Pakistani pilgrims to Islam's holiest sites for the annual Hajj pilgrimage to undergo immigration procedures on departure, rather than on arrival in Saudi Arabia. He also asked the prince to facilitate the more than 2.5 million Pakistanis who reside and work in Saudi Arabia, as well as the over 3,000 Pakistani prisoners in Saudi jails.

After the one-on-one meeting between the two leaders, the Pakistani government announced the formation of a new Supreme Coordination Council, meant to oversee implementation of agreements in the areas of politics, security, the economy and social issues. Saudi Arabia has in recent months helped keep Pakistan’s economy afloat by propping up rapidly dwindling foreign reserves with a $6bn loan, giving it breathing room as it negotiates a bailout with the International Monetary Fund.

Pakistan has shown appreciation by treating Prince Mohammed’s trip as the biggest state visit since one by Chinese President Xi Jinping in 2015, soon after Beijing announced plans to invest tens of billions of dollars on infrastructure in Pakistan as part of China’s Belt and Road initiative.

Prize Diplomacy

And now Saudi Prince has joined a new category. On the second day of his trip to Pakistan, Prince Mohammed met President Arif Alvi in the capital Islamabad, where he was awarded the Nishan-e-Pakistan (Order of Pakistan) at a formal ceremony. This is also notable that Saudi Crown Prince Mohammed bin Salman has been conferred with Pakistan's highest civilian honor a day after signing $20bn in investment deals with the South Asian country. As we know Nishan-e-Pakistan  used as a tribute to leaders who have benefited Pakistan. This award (before Prince Salman) has been also conferred to Queen Elizabeth II, King Abdullah bin Abdulaziz al Saud , erstwhile President of the People's Republic of China Hu Jintao, Turkish President Recep Tayyip Erdoğan,   Premier of the People's Republic of China Li Keqiang, President of the People's Republic of China        Xi Jinping.

Protests !!!

Bin Salman’s visit was delayed by a day amid widespread protests. However Pakistani authorities also blocked mobile phone and internet services in parts of the city, while the day of his arriving was also declared a public holiday. Protesters took to the streets after Friday prayers in Rawalpindi, calling on the government not to allow the Saudi prince into the country. The demonstrators blamed bin Salman for the killing of thousands of people, including the people of Yemen.

The Royal charity!

Since he was sworn in last August, Imran Khan has been aggressively seeking help from friendly countries in order to reduce the size of the bailout package that Pakistan is likely to need from the International Monetary Fund. Pakistan’s central bank has only $8bn (£6.2bn) left in foreign reserves and faces a balance of payments crisis. The country is seeking its 13th bailout since the late 1980s and Saudi Arabia has already provided a $6-billion loan.

However, the primary focus during MBS's visit has been on the investment deals that could see the construction of an oil refinery in the southern Pakistani port of Gwadar, the acquisition of two government-owned power plants by Saudi corporations, and alternative energy and mining projects. Pakistani officials have already flagged up that Saudi Arabia will announce eight investment agreements, including a $10 billion refinery and petrochemicals complex in the coastal city of Gwadar, where China is building a port.

Three government-to-government MoU’s worth billions were signed in oil refining, LNG and mineral development fields. Other $8 billion MOUs were also signed in fields of water, power, investment, finance, renewable energy, internal security, media, culture and sports to promote trade and investment in cash-strapped Pakistan.

Pakistan is set to propose a preferential trade agreement with Saudi and chalk out a strategy on easing out the process for business visas for Pakistanis. A mechanism to implement bilateral agreements will be devised by a joint coordination council which will be co-chaired by the Crown Prince and Pakistan PM.

What is Supreme Coordination Council?

The high-powered Supreme Coordination Council was proposed by Prince Mohammad Bin Salman during the visit of Prime Minister Imran Khan to Saudi Arabia in October 2018. The objective was to put in place a high level institutional mechanism to fast track decisions in key areas of bilateral cooperation, and for close monitoring of their implementation.

The Coordination Council includes respective Ministers of Foreign Affairs, Defense, Defense Production, Finance, Energy, Petroleum, Water Resources, Information, Culture, Interior, Commerce, Trade and Investment and Human Resources of both countries. The Council will cover areas under three pillars: political and security, economic, social and culture.

Under the Supreme Coordination Council, a Steering Committee and Joint Working Groups have been set up at Ministerial and Senior Officials levels, to develop framework of cooperation in specific projects and submit recommendations to the respective Ministers. The functioning of the Supreme Council will be coordinated by the Ministries of Foreign Affairs of the two countries. The Supreme Council will meet annually, in Riyadh and Islamabad alternately.

What does this visit mean?

Pakistan is the first stop on an international tour which is widely regarded as being part of an attempt to rebuild his reputation after the murder of the Saudi dissident journalist Jamal Khashoggi. The Saudi leader has seen his reputation across the world plummet after he was linked to the brutal slaying and dismemberment of Mr Khashoggi inside the kingdom’s consulate in Istanbul in October last year.

Khashoggi’s assassination has also put spotlight on the crimes the Saudi regime and a military coalition of its allies – led by bin Salman have been committing against Yemen over the past four years. There have been growing calls for Riyadh and its vassal states to end the bloody military campaign, which has led to the “world’s worst humanitarian crisis” in the Arab world’s already poorest nation. Now Bin Salman wants to demonstrate that he is not an international pariah.