September, 22, 2023
Saudi Arabia Deposits $2 Billion in Pakistan's State Bank

Saudi Arabia Deposits $2 Billion in Pakistan’s State Bank

In the present year, a sum of 3.5 billion dollars is anticipated to be received from China, while the Emirates is expected to contribute 1 billion dollars. Additionally, funding in the amount of 50 million dollars will be provided by both the Asian Development Bank and the World Bank. Furthermore, Saudi Arabia has pledged a generous contribution of 2 billion dollars.

The necessity arose to approach the International Monetary Fund (IMF) in order to eliminate the debts, involving the Prime Minister and the Saudi ambassador. Remarkably, the foreign exchange reserves have escalated to a remarkable sum of 11 billion dollars, my dear friend Dar.

In a significant development, Saudi Arabia has made a deposit of $2 billion in the State Bank of Pakistan, as confirmed by Finance Minister Ishaq Dar. The Prime Minister of Pakistan expressed his gratitude to the Saudi government in a video message, acknowledging the generous support from the friendly country. This deposit comes at a crucial time when Pakistan has been working on resolving its external financing concerns, including discussions with the International Monetary Fund (IMF).

Sources within the Ministry of Finance reveal that Pakistan is seeking financial assistance from multiple sources, such as the IMF, World Bank, Asian Development Bank, China, Saudi Arabia, and the United Arab Emirates. China, in particular, is expected to provide financing of $3.5 billion during the current fiscal year. The initial plan included obtaining $2 billion from Saudi Arabia, $1 billion from the UAE, $500 million from the Asian Development Bank, and $500 million from the World Bank.

The IMF board convened a meeting today to approve the release of a $1.2 billion tranche, further easing Pakistan’s financial situation. Prime Minister Shehbaz Sharif expressed his appreciation for the leadership and people of Saudi Arabia, emphasizing the positive impact this deposit will have on Pakistan’s economic recovery and improvement. He specifically thanked Crown Prince Muhammad bin Salman and Prime Minister Prince Muhammad bin Salman for ensuring financial support for Pakistan. The Prime Minister believes that this assistance will enhance Pakistan’s foreign exchange reserves and enable the implementation of necessary measures to improve the economy.

Furthermore, he commended Federal Finance Minister Senator Muhammad Ishaq Dar and Army Chief General Asim Munir for their contributions to this development. Speaking in Peshawar, the Prime Minister highlighted that seeking assistance from the IMF was not a choice made willingly. However, he emphasized the importance of Pakistan standing on its own feet to overcome its debts and put an end to dependency. He expressed optimism about Pakistan’s ability to achieve self-reliance, eradicate poverty, and gradually reduce inflation. He urged the nation to make the crucial decision of striving for financial independence rather than relying on external support.

Finance Minister Ishaq Dar shared that prior to the $2 billion deposit, Pakistan’s foreign exchange reserves stood at $9.67 billion. With this latest deposit, the reserves will reach approximately $11.6 billion. He assured the public that more positive news will follow in the days to come and highlighted the achievement of economic stability in Pakistan, setting the stage for sustainable economic growth.

The deposit from Saudi Arabia serves as a testament to the growing confidence of nations and the international community in Pakistan’s economic prospects. It reinforces Pakistan’s commitment to improving its financial stability and creating a favorable environment for economic growth. With the continued support of friendly countries, Pakistan is determined to address its economic challenges and ensure a prosperous future.


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