Miftah Ismail, Federal Minister for Finance and Revenue, confirmed on Wednesday that Pakistan has asked Saudi Arabia not to withdraw $3 billion in deposits held by the State Bank of Pakistan (SBP).
The minister told a press conference in Karachi that the government has also asked Saudi Arabia to upgrade the $1.2 billion oil facility. He stated that the Saudi government has responded positively in this regard.
Saudi Arabia deposited $3 billion in the State Bank of Pakistan last year to help support the country’s foreign reserves. In addition, Pakistan signed a $1.2 billion agreement for the import of petroleum products with deferred payments.
Miftah criticised the previous government’s agreement with the International Monetary Fund, claiming that the agreement would have resulted in significantly higher diesel and gasoline prices.
The minister claimed that if the conditions agreed upon by the PTI and the government were met today, diesel would be priced at Rs. 295 per litre rather than the current price of Rs. 145 per litre. He went on to say that Prime Minister Shehbaz Sharif “was and is resisting” these treaties.
He claimed that the Imran Khan-led government made contradictory promises to the people while agreeing to diametrically opposed terms abroad (with the IMF).
The minister also blamed the previous government for mismanagement in the energy sector, claiming that despite having surplus production capacity, the country had to face load shedding due to the PTI government’s incompetence.
He claimed that Prime Minister Shehbaz and Energy Minister Khurram Dastgir Khan had “ended load shedding” over the Eid holidays.
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