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Saudi Arabia announces to pull out Pakistan from financial crunch

MM News Staff by MM News Staff
December 8, 2022
Saudi Finance Minister Mohammed Al Jadaan

Image: Reuters

Saudi Arabia will help Pakistan, among other countries, sort out its finances and even pull it from the brink as its stock of reserves plunge.

This was stated by Saudi Finance Minister Mohammed Al Jadaan on Thursday in a news conference, a private TV channel reported.

The report, quoting Jadaan, said that Riyadh was looking to shore up alliances with countries struggling with the impact of rising inflation.

The Saudi government will “continue to support Pakistan as much as we can,” Al Jadaan said at a press conference in Riyadh.

Earlier in the week, Federal Finance Minister Ishaq Dar had met with Saudi Arabia Ambassador Nawaf bin Said Al-Malki at the finance division in Islamabad and had thanked him for rescheduling a $3 billion loan to Pakistan.

The money has been parked in Pakistan’s accounts but for all intents and purposes it cannot be touched by Pakistan. Earlier in the week, Saudi Arabia extended the term of the deposit.

It is pertinent to mention here that State Bank of Pakistan Governor Jameel Ahmad in the latest episode of the SBP Podcast series, discussed the country’s capacity to meet its international financial obligations and address concerns over external account vulnerabilities.

Ahmad said that all of Pakistan’s debt repayments are on track and that the country’s foreign exchange reserves are expected to increase in second half of the current fiscal year.

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