ISLAMABAD: Pakistan’s struggling economy has received a much-needed boost as Saudi Arabia has approved funding worth $2 billion. The development comes as Pakistan makes progress towards securing a $3 billion financing package from friendly nations.
According to a private news channel, the Kingdom of Saudi Arabia has given the green signal for $2 billion in funding, while the finance minister is also scheduled to contact UAE leadership before his US visit on April 10.
The news channel reported that the finance ministry has confirmed that Saudi Arabia has given the green light to provide $2 billion in funding to Pakistan.
To meet the IMF’s requirements, Pakistan’s government approached Saudi Arabia and the United Arab Emirates (UAE) for the deposit’s written guarantee.
Local media earlier reported that Saudi Arabia and UAE had requested some time to assure the IMF regarding the deposit. However, the two nations have now agreed to provide the required funding to Pakistan.
This news follows China’s recent decision to roll over its safe deposit of $2 billion on the existing terms, providing further stability to Pakistan’s foreign exchange reserves.
The financial assistance from these friendly countries is expected to help Pakistan overcome its economic challenges and emerge stronger.
Pakistan-IMF Talks for bailout package
The IMF objected to Pakistan’s annual subsidy of Rs. 900 billion, along with the petroleum levy and taxes shortfall. The global lender insisted on the collection of an Rs. 850 billion petroleum levy and addressing the shortfall of the petroleum levy and taxes.
This significant development will undoubtedly help Pakistan tackle its financial challenges and stabilize its economy, which has been struggling to cope with the impacts of the COVID-19 pandemic.
