Tuesday, February 11, 2025
HomeNewsWorldCash-strapped Pakistan gets $8 billion in financial backing from Saudi Arabia

Cash-strapped Pakistan gets $8 billion in financial backing from Saudi Arabia

Cash-strapped Pakistan gets $8 billion in financial backing from Saudi Arabia

Saudi Crown Prince Mohammed bin Salman meets Pakistan’s Prime Minister Shehbaz Sharif upon his arrival in Jeddah, Saudi Arabia (Reuters)ISLAMABAD: Saudi Arabia has consented to supply Pakistan with a”large plan”of around$ 8 billion to help the cash-starved nation reinforce dwindling forex reserves and revive its ailing economy, a media report stated on Sunday.
Pakistan has actually faced growing economic challenges, with high inflation, moving forex reserves, an expanding bank account deficit and a depreciating currency.
Pakistan secured the deal throughout the go to of Prime Minister Shehbaz Sharif to Saudi Arabia. The monetary plan consists of doubling of the oil funding center, additional money either through deposits or Sukuks and rolling over of the existing $4.2 billion facilities., The News reported.
“Nevertheless, technical information are being exercised and it will take a number of weeks to get all documents ready,” the report said, citing leading official sources privy to the development.
Prime Minister Sharif and his main entourage have actually left Saudi Arabia but minister for finance Miftah Ismail is still in the Gulf nation to finalise the techniques of the monetary package.
“Simply stated bye-bye to Prime Minister Shehbaz Sharif and other coworkers at Jeddah Airport, who are on their method to Islamabad after a short stopover in Abu Dhabi to meet Crown Prince Muhammad Bin Zayed. I remain in SA to satisfy Saudi authorities and begin technical-level talks,” Ismail stated in a tweet.
Pakistan had proposed doubling the oil center from $1.2 billion to $2.4 billion and Saudi Arabia consented to it. It was likewise concurred that the existing deposits of $3 billion would be rolled over for an extended duration of as much as June 2023, according to an authorities.
“Pakistan and Saudi Arabia went over an additional package of over $2 billion either through deposits or Sukuk and it is most likely that more money will be offered to Islamabad,” the report said, including that the size of the total package will be identified when the extra money is settled.
Saudi Arabia offered $3 billion deposits to the State Bank of Pakistan in December 2021 while the Saudi oil center was operationalised from March 2022, supplying Pakistan with $100 million to procure oil.
The oil-rich Gulf country had provided a $7.5 billion bundle to Pakistan during the last period of the PML-N government (2013-18). Under the PTI-led regime headed by ex-prime minister Imran Khan, Saudi Arabia provided a bundle of $4.2 billion, including $3 billion deposits and a $1.2 billion oil facility for one year and connected it with the IMF programme.
Saudi Arabia has actually offered an enhanced financial plan to Pakistan when its economy remains in dire straits and the country is dealing with a balance of payment crisis. The nation’s foreign exchange reserves have depleted by $6 billion in the last 6 to 7 weeks and nosedived to $10.5 billion.
With the increasing bank account deficit at $13.2 billion in the first 9 months and pushing external loan repayment requirements, Pakistan needs financial help of $9-12 billion till June 2022 to avoid more exhaustion of foreign currency reserves.

FOLLOW US ON SOCIAL NETWORK

FacebookTwitterInstagram

Published at Sun, 01 May 2022 09:46:00 +0000

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Recent Comments

chiffon dress design in pakistan on Realme 6 Pro Review | NDTV Gadgets 360
You searched for on Realme X50 Pro 5G Review
Telefoane Mobile Ieftine si Accesorii on Oppo Enco Free True Wireless Earphones Review