According to a report published in The News, the International Monetary Fund (IMF) had conveyed to Pakistani authorities that they had “secured confirmation on the provision of $2 billion in additional deposits from Saudi Arabia.”
Saudi leaders are expected to make a public announcement in this regard during Prime Minister Shehbaz Sharif’s visit to the Kingdom later this month.
This funding from Saudi Arabia is a significant development for Pakistan’s economy, which has been grappling with economic challenges.
Read more: Saudi King directs the Government to Invest $1 bln in Pakistan
In August 2022, the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, directed a one-billion-dollar investment in Pakistan, emphasizing the Kingdom’s support for Pakistan’s people and economy.
This came just a day after the Qatar Investment Authority declared its intention to invest $3 billion in Pakistan.
Pakistan is also looking towards the UAE to “secure verification from the UAE on an additional $1 billion deposit for moving towards a staff-level agreement with the IMF”.
Pakistan is in dire need of sustained US dollar inflows to avoid defaulting on nearly $80 billion of international loan repayments over the next three and a half years. The country is currently sitting on just $3 billion in foreign exchange reserves.
Pakistan is also locked in difficult negotiations with the International Monetary Fund (IMF) over its 13th bailout package since the 1980s.
If an agreement isn’t struck soon, Pakistan will find it increasingly difficult to secure international loans, as its credit rating has been downgraded to junk.
For more on the economy, click here.