The Saudi’s Minister of Finance, Mohammed al-Jadaan, has recently made an announcement that Saudi Arabia is considering to finalise the extension of the kingdom’s $3 billion deposit to Pakistan.
He made the following statement on the sidelines of the World Economic Forum in Davos, “We are currently finalising extending the $3 billion deposit to Pakistan.”
In 2021, Saudi Arabia has made a deposit of $3 billion in Pakistan’s central bank to assist in its foreign reserves.
Meanwhile, Jabaan has provided no further details, but on May 1, the two nations has mentioned in a joint statement that they would talk about the possibility of favouring the deposit by extending its term “or through other options.”
Pakistan is facing a continuous need of external finances, which is hurt by high inflation, reserves declining to as low as less than two months’ of imports, and a rapid-weakening currency.
Jadaan further added that Pakistan was a significant ally, and the kingdom would stand by the South Asian country.
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.
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