ISLAMABAD: Saudi Arabia has invested $2 billion in Pakistan in recent days after Islamabad signed an agreement with the International Monetary Fund (IMF) for a $3 billion investment, Pakistan Finance Minister Ishaq Dar said on Tuesday.
“The State Bank of Pakistan (SBP) has received 2 billion dollars from the Kingdom of Saudi Arabia,” Dar said in a press release, adding that this entry has increased the forex reserves and this will be reflected in the forex reserves. the week that ends on July 14. “On Friday, our warehouse closed at least $ 10 billion, standing at about $ 9.67 billion, so you can imagine that they are close to $ 11.67 billion,” said the minister.
The increase came after Islamabad signed a short-term agreement with the IMF on June 30 under a stand-by arrangement that would disburse $3 billion over nine months, subject to approval by the IMF’s board, which will meet on July 12. Saudi Arabia had pledged the money to Pakistan. and waiting for the much-anticipated IMF deal to be announced before putting it in place.
The financial support will help reduce foreign exchange reserves, which fell to a one-month low in foreign-controlled flows.
On behalf of the prime minister and the army chief, Dar said he thanked the Saudi leadership for its support.
Prime Minister Shehbaz Sharif also thanked Saudi Arabia and Crown Prince Mohammad bin Salman for ensuring Pakistan’s financial support. “This deposit will strengthen the 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 of Pakistan.
International and international funding was a major obstacle in Pakistan’s approach to the IMF – which was suspended for nine months and ended on June 30. the government will improve its monetary policy.
With rising inflation and a month’s worth of foreign currency holdings afloat, analysts say Pakistan’s financial crisis could have been debt-ridden in the absence of an IMF bailout.
“The State Bank of Pakistan (SBP) has received 2 billion dollars from the Kingdom of Saudi Arabia,” Dar said in a press release, adding that this entry has increased the forex reserves and this will be reflected in the forex reserves. the week that ends on July 14. “On Friday, our warehouse closed at least $ 10 billion, standing at about $ 9.67 billion, so you can imagine that they are close to $ 11.67 billion,” said the minister.
The increase came after Islamabad signed a short-term agreement with the IMF on June 30 under a stand-by arrangement that would disburse $3 billion over nine months, subject to approval by the IMF’s board, which will meet on July 12. Saudi Arabia had pledged the money to Pakistan. and waiting for the much-anticipated IMF deal to be announced before putting it in place.
The financial support will help reduce foreign exchange reserves, which fell to a one-month low in foreign-controlled flows.
On behalf of the prime minister and the army chief, Dar said he thanked the Saudi leadership for its support.
Prime Minister Shehbaz Sharif also thanked Saudi Arabia and Crown Prince Mohammad bin Salman for ensuring Pakistan’s financial support. “This deposit will strengthen the 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 of Pakistan.
International and international funding was a major obstacle in Pakistan’s approach to the IMF – which was suspended for nine months and ended on June 30. the government will improve its monetary policy.
With rising inflation and a month’s worth of foreign currency holdings afloat, analysts say Pakistan’s financial crisis could have been debt-ridden in the absence of an IMF bailout.