Insta
The ‘Bowl-Ing’ Worked? Pakistan Claims Saudi Arabia Agrees To $6 Billion Support Package
Swarajya Staff
Oct 24, 2018, 01:43 PM | Updated 01:42 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
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.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.