Saudi Arabia has agreed to provide aid worth $ 4.2 billion to cash-strapped Pakistan to prop up its economy, he said on Wednesday after Prime Minister Imran Khan had had talks with Saudi Prince Mohammad bin Salman in Riyadh this week.
“Saudi Arabia’s announcement backs Pakistan with US $ 3 billion on deposit at Pakistan’s central bank and also funds refined petroleum products with US $ 1.2 billion during the year,” he said. he said in a tweet.
Prime Minister Imran Khan thanked Prince Salman for the generous assistance as Pakistan’s economy struggled.
“I would like to thank HRH Prince Mohammad bin Salman for supporting Pak with $ 3 billion on deposit at Pak central bank and for financing refined petroleum products with $ 1.2 billion. The KSA has always been there. for Pak in our difficult times, including now when the world is faced with rising commodity prices (sic), ”he said on Twitter.
In 2018, Saudi Arabia provided $ 3 billion in cash deposits and pledged a $ 3 billion oil facility to Pakistan to help its foreign exchange reserves in 2018.
However, as bilateral relations deteriorated later, Islamabad had to return $ 2 billion on deposits of $ 3 billion.
Pakistan announced in June this year that Saudi Arabia was on the verge of making an oil facility of $ 1.5 billion per year available.
Now he has provided direct assistance to the disposal as well as oil installations after Imran Khan’s visit.
An official announcement of the deal would be made by Prime Minister’s adviser on finance and revenues Shaukat Tarin and Energy Minister Hammad Azhar, the Dawn newspaper reported.
The Saudi government will immediately deposit $ 3 billion in Pakistan’s account for a year and maintain it at least until the completion of the International Monetary Fund (IMF) program in October 2023, according to the report citing an official.
Pakistan and the IMF signed the $ 6 billion deal in July 2019, but the program derailed in January 2020 and was briefly reinstated in March this year before derailing again in June.
From June to August, there was no serious discussion between the two parties.
In addition, the Saudi government is reportedly supplying crude oil to Islamabad on the basis of deferred payments worth up to $ 1.5 billion per year, according to the report.
(Except for the title, this story was not edited by DAILYNEWSCATCH staff and is posted from a syndicated feed.)