business
Tuesday May 24 2022
By
Reuters

Saudi Arabia finalising extension of $3 billion deposit to Pakistan

By
Reuters
Saudi Minister of Finance Mohammed al-Jadaan gestures as he speaks during the Saudi Green Initiative Forum to discuss efforts by the worlds top oil exporter to tackle climate change, in Riyadh, Saudi Arabia, October 23, 2021. — Reuters/File
Saudi Minister of Finance Mohammed al-Jadaan gestures as he speaks during the Saudi Green Initiative Forum to discuss efforts by the world's top oil exporter to tackle climate change, in Riyadh, Saudi Arabia, October 23, 2021. — Reuters/File 

  • Saudi finance minister says Pakistan was an important ally and kingdom would stand behind South Asian nation.
  • Pakistan is in dire need of external finances, hurt by high inflation, reserves declining to as low as less than two months' of imports.
  • Uncertainty over revival of IMF programme has compounded volatility in the economy and markets.


DAVOS: Saudi Arabia is finalising the extension of the kingdom's $3 billion deposit to Pakistan, Saudi Minister of Finance Mohammed al-Jadaan told Reuters.

"We are currently finalising extending the $3 billion deposit to Pakistan," he said on the sidelines of the World Economic Forum in Davos.

Last year, Saudi Arabia deposited $3 billion in Pakistan's central bank to help support its foreign reserves.

Jadaan did not offer further details, but on May 1 the two countries said in a joint statement that they would discuss the possibility of supporting the deposit by extending its term "or through other options."

Pakistan is in dire need of external finances, hurt by high inflation, reserves declining to as low as less than two months' of imports, and a fast-weakening currency.

Jadaan said Pakistan was an important ally and the kingdom would stand behind the South Asian nation.

Uncertainty over the revival of an International Monetary Fund programme has compounded volatility in the economy and markets amid a political crisis since a new government took over last month from ousted Prime Minister Imran Khan.

The IMF is likely to conclude ongoing talks over a 7th review in Doha.