Islamabad, Pakistan (CU)_ According to a senior government source, cash-strapped Pakistan got USD 3 billion fund support from Saudi Arabia as part of a financial aid package requested from the Kingdom to strengthen Pakistan’s ailing economy. Following the meeting between Prime Minister Imran Khan and Saudi Arabia’s Crown Prince Mohammad bin Salman, which was held at Riyadh last month, Pakistan announced the huge financial assistance from Saudi Arabia.
Following the meetings, Saudi Arabia agreed to offer Pakistan a USD 4.2 billion fund support, of which USD 3 billion would be deposited in Pakistan’s central bank and 1.2 billion US dollars would be used to finance refined petroleum products throughout the year. Shaukat Tarin, Prime Minister’s advisor on Finance and Revenue, revealed that Saudi Arabia had deposited USD 3 billion in the State Bank of Pakistan (SBP).
Shaukat Tarin took to Twitter to announce the news. He tweeted, “Good news, USD 3 bn Saudi deposit received by SBP. I want to thank His Excellency Crown Prince Mohammed Bin Salman and the Kingdom of Saudi Arabia for the kind gesture”. The USD 3 billion deposit is intended to alleviate the pressure on the Pakistani currency and improve the country’s foreign exchange reserves.
Pakistan’s Cabinet authorized the arrangement last month, opening the door for the cash to be transferred, and the SBP signed a deal with the Saudi Fund for Development to receive the funds. The fund assistance comes at a right time when the Pakistani rupee hit an all-time low of 176 to one US Dollar, and it is intended to help strengthen the currency and enhance the country’s balance of payments, which has been the government’s major concern.
