Saudi Arabia has agreed to give Pakistan $3 billion in foreign currency support for a yr and permit it to defer funds for oil imports to help stave off a present account disaster, Pakistan’s authorities stated on Tuesday.
The settlement got here as new Pakistani Prime Minister Imran Khan attended a Saudi funding convention that has been boycotted by a number of different leaders over the loss of life of a dissident Saudi author on the nation’s consulate in Istanbul.
Khan had stated earlier than departing that his nation is “determined” to shore up its overseas forex reserves, that are at a four-year low, equal to lower than two months’ imports and barely sufficient to make its debt repayments by the remainder of the yr.
Pakistan Finance Minister Asad Umar earlier this month requested talks with the International Monetary Fund (IMF) for the nation’s second bailout in 5 years. An IMF workforce is because of go to Pakistan to open negotiations on Nov. 7.
Khan had nonetheless sought to keep away from going to the IMF and nonetheless desires to no less than scale back the scale of any bailout by interesting to “pleasant countries” for bilateral monetary assist.
Khan had visited Saudi Arabia final month in his first abroad journey since taking workplace in August, however that journey failed to supply any important help, regardless of Pakistani media experiences of agreements on deferred oil funds.
Pakistan’s International Ministry on Tuesday evening introduced the newest go to had met with success.
“It was agreed Saudi Arabia will place a deposit of USD three Billion for a interval of 1 yr as steadiness of cost assist,” the minister stated in an announcement.
“It was additionally agreed one yr deferred cost facility for import of oil, as much as USD three Billion, can be supplied by Saudi Arabia. This association can be in place for 3 years, which can be reviewed thereafter.”
Khan is scheduled to go to China subsequent week.