Pakistan’s economy is set to receive a much-needed boost as Saudi Arabia has given the green signal for funding worth $2 billion.
The development comes amidst significant progress in financing worth $3 billion from friendly countries.
Sources in the finance ministry confirmed that Saudi Arabia has given the green signal of financing $2 billion to Pakistan.
In the last week of March, China rolled over its safe deposit of $2 billion on the existing terms as the country’s foreign exchange reserves remain stabilized.
Sources said that the deferment of payment has been done for a year.
Sources added that Pakistan was seeking confirmation of financing from Saudi Arabia and United Arab Emirates (UAE) which is a ‘prerequisite’ to secure loan tranche from International Monetary Fund (IMF).
Earlier this week, Minister of State for Finance and Revenue, Ayesha Ghous Pasha, stated that the IMF was verifying external financing from friendly countries such as China, UAE, and Saudi Arabia.
In this regard, Finance Minister Ishaq Dar will contact the officials in the United Arab Emirates (UAE) before departing for the US on April 10.
This funding from Saudi Arabia is a significant development for Pakistan’s economy, which has been grappling with economic challenges.
Notably, the IMF remains concerned about Pakistan’s economic policies, with objections to the annual subsidy of Rs900 billion and insistence on further interest rate increases to keep pace with inflation.
