Authorities in Pakistan on Saturday said they are hopeful that Islamabad will sign a deal for additional deposits of $2 billion from Saudi Arabia after Eid, GeoNews said in a report, citing government officials.
The official told the Pakistan-based news agency that these deposits are necessary for the country’s economy as the federal government seeks external financing to shore up the dwindling foreign exchange reserves. As of April 14, Pakistan forex reserves sit at a mere $4.3 billion.
The official said the State Bank of Pakistan (SBP) will sign a deal with the Saudi Fund for Development (SFD) soon after Eid festivities for an additional $2 billion deposit.
The official also outlined while speaking to GeoNews that Saudi Arabia confirmed bilateral assistance support to the International Monetary Fund (IMF) and the IMF staff acknowledged the same.
This agreement is a follow-up on the confirmation of additional financial support from UAE and Saudi Arabia of $1 billion and $2 billion, respectively.
The official clarified that Pakistan did not make fresh request for more support from neither Saudi Arabia nor the UAE, barring the already confirmed $2 billion and $1 billion by these countries, respectively.
The report by GeoNews said that Saudi Arabia extended financial support of $3 billion in deposits for one year. This amount matured on December 5, 2022 and is part of the forex reserves of $4.43 billion, which lies with the SBP.
Saudi Arabia also provided an oil facility worth $1.2 billion on deferred payment in November 2021 during the tenure of the former prime minister Imran Khan.
The report said that when Prime Minister Shehbaz Sharif visited Saudi Arabia in 2022, shortly after coming to power he requested for rollover of $3 billion deposits and a $1.2 billion oil facility for one year as well as for additional deposits.
Saudi Arabia provided Pakistan with an oil facility worth $782.82 million during the first nine months of Pakistan’s current fiscal year of 2022-23, which begins in July.
Saudi Arabia is providing approximately $100 million for procuring oil facilities on a monthly basis and has also released a $100 million loan in the shape of project financing.
Read all the Latest News here