Tuesday, October 3, 2023

Saudi Arabia Deposited $2 Billion in State Bank: Ishaq Dar

On Tuesday, Pakistan’s Finance Minister Ishaq Dar announced that Saudi Arabia had deposited $2 billion into the State Bank of Pakistan (SBP). This deposit came shortly after Pakistan reached an agreement with the International Monetary Fund (IMF) for a Stand-By Arrangement of $3 billion.

During a press conference, Dar stated that the SBP had received the $2 billion deposit from Saudi Arabia, which will increase the country’s foreign exchange reserves. This deposit will be reflected in the forex reserves for the week ending July 14.

The agreement with the IMF, signed on June 30, paved the way for these inflows. However, the approval of the IMF’s board, which is set to meet on July 12, is still pending.

Resolving issues related to multilateral and bilateral funds was a significant challenge in finalizing Pakistan’s agreement with the IMF, causing delays that lasted over nine months. The Stand-By Arrangement has provided some relief for Pakistan, averting a potential default and helping the government streamline fiscal policies.

Analysts believe that Pakistan’s economic crisis, characterized by high inflation and limited foreign exchange reserves, could have escalated into a debt default without the IMF bailout.

Finance Minister Dar expressed gratitude on behalf of Prime Minister Shehbaz Sharif to Chief of Army Staff General Asim Munir for his support. He also praised the Saudi rulers as “true brothers.”

Related Articles

Latest Articles