Saturday, June 22, 2024

Pakistan expects multibillion dollar support from Saudi Arabia

As the nation’s ninth review of a $7 billion IMF bailout hits roadblocks. Pakistan is expected to obtain a multibillion-dollar financial rescue package from longtime ally Saudi Arabia this month, according to two sources.

The two finance ministry officials said the Saudi package would include deposits boosting the country’s foreign reserves and oil on deferred payments. Finance Minister Ishaq Dar said earlier he hoped talks with Saudi Arabia would happen soon.

“We are expecting that we will, God willing, get financial support from Saudi Arabia, most likely this month,” one of the senior officials told Reuters, adding it would be around a $4 billion package.

“Some of that package will go to our reserves, and the rest is oil and some other commodities on deferred payments,” he said.”Pakistan has brotherly relations with Saudi Arabia.”

“Both countries have helped each other in times of need,” a finance ministry media official told Reuters without elaborating or giving any further details.

Pakistan’s economy is facing a balance of payment crisis. The central bank reserves have fallen to $6.7 billion, barely enough for a month of imports.

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