Saudi Arabia’s $3 billion deposit with Pakistan is being finalised, according to Saudi Minister of Finance Mohammed al-Jadaan.
On the sidelines of the World Economic Forum in Davos, he added, ‘We are currently finalising the extension of the $3 billion deposit to Pakistan.’
Saudi Arabia put $3 billion into Pakistan’s central bank last year to boost the country’s foreign reserves.
Jadaan did not provide any additional information, but the two countries indicated in a joint statement on May 1 that they would examine the prospect of extending the deposit’s term ‘or through other possibilities.’
High inflation, reserves that have fallen to fewer than two months’ worth of imports, and a rapidly falling currency have left Pakistan in desperate need of external funds.
Pakistan is a key ally, according to Jadaan, and the monarchy would support the South Asian country.
Since a new government took over from deposed Prime Minister Imran Khan last month, uncertainty surrounding the reinstatement of an International Monetary Fund programme has exacerbated instability in the economy and markets.
In Doha, the IMF is expected to wrap up ongoing deliberations on a seventh review.
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