Pakistan gets a financial package from Saudi Arabia to manage their cash-starved situation in the Country. Saudi Arabia has agreed to provide a "sizeable package", financial support of around $8 billion.
The financial package will help Pakistan bolster dwindling forex reserves and revive the ailing economy. To avert further depletion of foreign currency reserves, Pakistan requires financial assistance of USD 9-12 billion till June 2022. Previously, in December 2021, Saudi Arabia provided USD 3 billion deposits to the State Bank of Pakistan.
The country has been facing growing economic challenges, including high inflation, sliding forex reserves, a widening current account deficit, and a depreciating currency.
Saudi’s ‘sizeable package’ includes doubling of the oil financing facility, additional money either through deposits or Sukuks, and rolling over of the existing USD 4.2 billion facilities.
To finalize the financial package, Pakistan’s finance minister Miftah Ismail has stayed back in Saudi Arabia by working out the technical details of the package.
During 2013 to 18, Saudi Arabia had provided Pakistan with USD 7.5 billion packages. Under the PTI-led regime headed by ex-prime minister Imran Khan, Saudi Arabia provided a package of $4.2 billion, including $3 billion in deposits and a $1.2 billion oil facility for one year.