Post by : Bianca
Haleem
Saudi Arabia has unveiled an additional $3 billion financial assistance package for Pakistan, aimed at helping the nation address its external financing challenges and bolster its economy.
This new funding arrives as Pakistan is under pressure to settle approximately $3.5 billion with the United Arab Emirates this month. This payment represents nearly 18% of Pakistan’s foreign exchange reserves, which were around $16.4 billion as of March 27.
In addition to the fresh $3 billion injection, Saudi Arabia will also extend the maturity of an existing $5 billion deposit held with Pakistan’s central bank. This strategy is intended to provide additional support to Pakistan’s financial situation.
Pakistan’s Finance Minister Muhammad Aurangzeb remarked that this support is timely and will aid in stabilizing the nation's external accounts and enhancing foreign reserves. He further confirmed Pakistan’s dedication to upholding its financial commitments under the International Monetary Fund (IMF) program.
Under its $7 billion deal with the International Monetary Fund, Pakistan is aiming to raise its foreign exchange reserves to over $18 billion by June.
This financial aid underscores the deepening relationship between Saudi Arabia and Pakistan, with the latter having received substantial support from the former during challenging economic times.
Previously, Pakistan indicated it is considering various financing sources, including Eurobonds, loans, and commercial borrowing, to address its funding needs.
Saudi Arabia’s recent actions are anticipated to offer immediate relief and contribute to Pakistan’s economic stability during this critical phase.
English
