Friend in need is a friend indeed, Saudi Arabia provides financial support for Pakistan
Pakistan will receive financial help from Saudi Arabia. An agreement was reached between Pakistan and Saudi Arabia when Prime Minister Imran Khan met with Saudi Crown Prince Mohammad bin Salman bin Abdulaziz Al Saud which was will be formally announced Wednesday (today) by Energy Minister Hammad Azhar along with Prime Minister adviser on finance and revenue Shaukat Tarin.
As per the reports. Saudi Arabia will provide petroleum supplies worth $1.2bn to 1.5bn on deferred payments while around $3bn is expected to be deposited in a safe deposit of the State Bank of Pakistan to keep the foreign reserves, trade and forex under control.
An agreement has been reached between both parties to keep rolling the deposit until the IMF program is completed in October 2023. It is expected that Saudi Arabia will send in the deposits immediately as well as provide Pakistan with the supplies of petroleum with the option of deferred payments.
Information Minister Fawad Chauhdry also confirmed the agreement via his Twitter account.
This is not the first time Pakistan has received financial support from Saudi Arabia, earlier in 2018, cash deposits of $3bn were provided to Pakistan crib up the dangers to foreign exchange reserves along with the petroleum supplies with deferred payments. But, due to circumstances, Pakistan had to return $2bn to Saudi Arabia.
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Prime Minister Imran Khan has also thanked the Crown Prince for his extended friendship and support to Pakistan during these tough and difficult times.
According to financial experts, this financial support from Saudi Arabia will be helpful for Pakistan which will help the nation to resist inflation and hike in dollar price.
People on social media have also cheered for support from the Government of Saudia Arabia and hope that Pakistan will be able to fight inflation comprehensively.
