ISLAMABAD: Pakistan has received $2 billion in deposits from Saudi Arabia, Finance Minister Ishaq Dar he said on Tuesday, before the general meeting IMF agreeing to a loan to a country that has money.
Last month, a Government of Pakistan and the International Monetary Fund (IMF) reached a long-awaited staff agreement to inject a $3 billion Standby Arrangement (SBA) into the ailing economy after months of negotiations that pushed the country to the brink of default.
The IMF Executive Board will meet on July 12 to review Pakistan’s SBA.
“The State Bank of Pakistan (SBP) has received (a) $2 billion in cash from the Kingdom of Saudi Arabia. This inflow has increased the cash reserves of the SBP and will be visible in the cash registers in the last week of July 14 2023,” Dar said in his statement on Twitter.
Prime Minister Shehbaz Sharif also thanked the “leadership and brothers of the Kingdom of Saudi Arabia” for the role and thanked Crown Prince Mohammed bin Salman for ensuring Pakistan’s support.
“This deposit will strengthen foreign investment in Pakistan. It shows the growing confidence of our brother countries and all nations regarding the economic transformation of Pakistan. We are committed to do everything necessary for the development of the economy of Pakistan,” said the Prime Minister.
He also praised Dar and Army General Asim Munir for the “valuable efforts they have made” to improve the economy.
Riyadh had already pledged the money but waited for the IMF agreement to be announced before committing it. Similarly, the UAE pledged aid that helped Pakistan convince the IMF that it had sufficient aid to meet its debt obligations.
According to the SBP’s statement on Monday, the cash-strapped country lost $4 billion in remittances to illegal channels in the current financial year, much higher than the amount the government struggled to get from the IMF as a bailout.
On Friday, the country’s foreign exchange reserves showed improvement for the second consecutive week, reaching $4.4 billion, The Express Tribune reported.
Pakistan’s economy has been free-flowing for the past many years, causing untold hardship to the poor in a cheap way, making it impossible for most people to earn a living.
Last month, a Government of Pakistan and the International Monetary Fund (IMF) reached a long-awaited staff agreement to inject a $3 billion Standby Arrangement (SBA) into the ailing economy after months of negotiations that pushed the country to the brink of default.
The IMF Executive Board will meet on July 12 to review Pakistan’s SBA.
“The State Bank of Pakistan (SBP) has received (a) $2 billion in cash from the Kingdom of Saudi Arabia. This inflow has increased the cash reserves of the SBP and will be visible in the cash registers in the last week of July 14 2023,” Dar said in his statement on Twitter.
Prime Minister Shehbaz Sharif also thanked the “leadership and brothers of the Kingdom of Saudi Arabia” for the role and thanked Crown Prince Mohammed bin Salman for ensuring Pakistan’s support.
“This deposit will strengthen foreign investment in Pakistan. It shows the growing confidence of our brother countries and all nations regarding the economic transformation of Pakistan. We are committed to do everything necessary for the development of the economy of Pakistan,” said the Prime Minister.
He also praised Dar and Army General Asim Munir for the “valuable efforts they have made” to improve the economy.
Riyadh had already pledged the money but waited for the IMF agreement to be announced before committing it. Similarly, the UAE pledged aid that helped Pakistan convince the IMF that it had sufficient aid to meet its debt obligations.
According to the SBP’s statement on Monday, the cash-strapped country lost $4 billion in remittances to illegal channels in the current financial year, much higher than the amount the government struggled to get from the IMF as a bailout.
On Friday, the country’s foreign exchange reserves showed improvement for the second consecutive week, reaching $4.4 billion, The Express Tribune reported.
Pakistan’s economy has been free-flowing for the past many years, causing untold hardship to the poor in a cheap way, making it impossible for most people to earn a living.