Monday, March 4, 2024

Saudi Arabia to Deposit $2 Billion in State Bank of Pakistan to Avoid Default

The Kingdom of Saudi Arabia has announced to deposit $2 billion in the State Bank of Pakistan to help the country in economic crisis, stated by Khawaja Asif, Defense Minister Pakistan. The donation will help Pakistan revive the IMF loan program impeded since September 2022.

Pakistan is still struggling to the complete the 9th review by IMF of securing $1.1 billion loan, but the economic challenges have made it highly demanding for the country despite meeting many conditions including surging taxes on electricity and free floating of local currency.

Khawaja Asif in an interview stated that Saudi Arabia will pay the funds upon the request of IMF. He further mentioned that this is not a big amount and is only to complete the IMF program by 30th June.

As the deadline approaches, the Pakistan government must explore other ways to avert default. Will the country be able to do it will be seen in the next month.

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