Friday, December 9, 2022

Saudi Arabia finalized the extension of a 3 billion deposit to Pakistan

According to the Saudi Minister of Finance Mohammed al-Jadaan, Saudi Arabia is in the process of putting the finishing touches on an extension of the kingdom’s $3 billion deposit to Pakistan.

He stated this while attending the World Economic Forum in Davos, Switzerland. “We are now finalizing extending the $3 billion deposit to Pakistan,” he remarked.

In order to assist Pakistan in maintaining its foreign reserves, Saudi Arabia made a deposit of $3 billion in Pakistan’s central bank in the previous year.

Jadaan did not provide any additional information; nevertheless, on May 1 the two countries announced in a joint statement that they would consider the potential of supporting the deposit by extending its term “or through other possibilities.” Jadaan did not provide any of these details.

As a result of soaring inflation, dwindling reserves that now cover fewer than two months’ worth of imports, and a rapidly depreciating currency, Pakistan is in desperate need of financial assistance from other countries.

According to Jadaan, Pakistan is a significant ally, and the kingdom of Saudi Arabia will support the South Asian country in any conflict.

Since a new government took over from the one led by the former prime minister Imran Khan a month ago, the economy and the markets have been extremely volatile. This volatility has been compounded by the uncertainty surrounding the resumption of a program run by the International Monetary Fund (IMF).

Read Also: Monetary Policy: SBP Raises interest Rate to 13.75%

It is anticipated that continuing discussions regarding the 7th review will come to a close in Doha.

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