Saudi Arabia has agreed to provide $4.2 billion worth of assistance to Pakistan to support its economy after Prime Minister Imran Khan held talks with Saudi Crown Prince Mohammad bin Salman in Riyadh this week.
According to reports, Shaukat Tarin, the Prime Minister’s Finance Advisor, stated on Wednesday that Saudi Arabia’s finance minister pledged to keep US$3 billion and a $1.2 billion deferred oil facility with the State Bank of Pakistan.
In a tweet earlier today, Shaukat Tarin claimed, “Kingdom of Saudi Arabia to place US$3 billion with SBP and a $1.2 billion deferred oil facility to support Pakistan’s balance of payment.”
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The bid, according to the finance advisor, is a “kind gesture” on Saudi Arabia’s behalf.
Yesterday evening the Finance Minister of Saudi Arabia informed me of the generous gesture of the Kingdom of Saudi Arabia to place US$3bn with SBP & a $1.2bn deferred oil facility to help the balance of payment of Pakistan.We thank the Crown Prince & the KSA for this kind gesture
— Shaukat Tarin (@shaukat_tarin) October 27, 2021
He expressed gratitude for the “kind gesture,” which he said will boost Pakistan’s balance of payments.
According to the Saudi Press Agency, the Fund for Development “announced the issuing of a generous directive to deposit an amount of three billion dollars with the Central Bank of Pakistan…” late yesterday night.
It’s been designated to aid the Pakistani government in maintaining its foreign cash reserves and dealing with the effects of the Corona outbreak.
The “kind gesture” also included $1.2 billion in financing for the oil derivatives trade over the course of the year.
The SPA statement added, “These generous directives confirm the Kingdom’s continuous position in assisting the economy of the sisterly Republic of Pakistan.”
The news follows the recent of Prime Minister Imran Khan’s three-day visit to the Kingdom, which ended yesterday.
