Pakistan has succeeded in getting assistance from Saudi Arabia as another condition by IMF to get approval for the next tranche.
Prime Minister (PM) Shahbaz Sharif visited Saudi Arabia in April 2022, and he asked Saudi Prince Mohammed bin Salman bin Abdulaziz Al-Saud to provide support to Pakistan by giving deposits in SBP to support the external account. Both countries have good bilateral religious, economic, and social relations.
Saudi Prince has shared his greetings with PM Shahbaz Sharif on the completion of 75 years of independence of Pakistan in a telephonic conversation. He assured that Saudi would provide cooperation in energy, investment, and trade. Saudi Arabia will renew its deposits to SBP. A deposit of US$ 3 billion will receive this week. Further, he said to assist in petroleum products of US$ 100 million for ten months every month.
The deposit will fulfill the need for funds from Saudi Arabia demanded by IMF, as approval is expected from the board of IMF at the end of August 2022. PM Shahbaz has invited the Saudi prince to visit Pakistan and he accepted it.
Pakistan’s foreign exchange reserves will increase with this support and will strengthen the currency of Pakistan. As investment in trade and energy increases, Pakistan’s economy will flourish.
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