Saudi Arabia is finalising the expansion of the kingdom’s $3 billion deposit to Pakistan, according to Saudi Finance Minister Mohammed al-Jadaan.
“We are now finalising the extension of Pakistan’s $3 billion deposit,” he said on the sidelines of the World Economic Forum in Davos.
Saudi Arabia deposited $3 billion in Pakistan’s central bank last year to assist sustain the country’s foreign reserves.
Jadaan did not provide any information, but the two nations indicated in a joint statement on May 1 that they would consider sustaining the deposit by extending its duration “or via other methods.”
Pakistan is in desperate need of foreign funds, owing to soaring inflation, reserves that have fallen to less than two months’ worth of imports, and a rapidly deteriorating currency.
According to Jadaan, Pakistan is a key ally, and the monarchy would support the South Asian country.
Uncertainty about the reinstatement of an International Monetary Fund programme has exacerbated volatility in the economy and markets in the midst of a political upheaval since a new administration took over from deposed Prime Minister Imran Khan last month.
The IMF is expected to finish ongoing negotiations in Doha on a seventh review.
To read our blog on “On his bike, a Pakistani man travels to Saudi Arabia for Umrah,” click here.
