The ‘Bowl-Ing’ Worked? Pakistan Claims Saudi Arabia Agrees To $6 Billion Support Package

Pakistan has said that after the second visit of Pakistani Prime Minister Imran Khan to seek aid, Saudi Arabia has agreed to provide a $6 billion support package to improve dwindling Pakistani finances, Bloomberg has reported.

According to the memorandum of understanding signed between the finance ministers of the two countries on Tuesday (22 October), Pakistan will get a deposit of $3 billion directly from Saudi Arabia “as balance of payment support”. Another $3 billion for oil imports will come as one-year deferred payment.

“This arrangement will be in place for three years, which will be reviewed thereafter,” as per a statement released by Pakistan’s Finance Ministry.

The “far larger than expected “ Saudi aid, however, will not be able to address the complete needs of Pakistan but will help Pakistan in negotiating a smaller loan facility from the International Monetary Fund with less stringent conditions, Mohammad Sohail, chief executive officer of a Karachi based brokerage told Bloomberg.

The Pakistani government had announced earlier this month that it was seeking a bailout package from the IMF to tackle the balance-of-payments crisis of its economy.

Pakistani Prime Minister has been seeking financial support from friendly countries like China, Saudi Arabia and United Arab Emirates since he took office.