Pakistan Expresses Gratitude to Saudi Arabia for $2 Billion Central Bank Deposit Ahead of IMF Meeting
Pakistan’s government has expressed its deep appreciation to Saudi Arabia for a much-needed financial boost. Saudi Arabia has deposited $2 billion into Pakistan’s central bank, which will help bolster the country’s foreign exchange reserves and provide relief during a critical time. The announcement was made by Pakistani Finance Minister Ishaq Dar, who confirmed that the deposit is not a loan but will remain with the central bank for at least one year.
This development comes just before the International Monetary Fund’s executive board meeting, where the approval of a new $3 billion loan to Pakistan is expected. The loan will be instrumental in helping Pakistan overcome its ongoing economic crisis. Last week, Pakistan’s foreign exchange reserves stood at $9.6 billion, which was barely enough to cover import bills for a month. However, with the $2 billion deposit from Saudi Arabia, the reserves have now risen to $11.6 billion.
Finance Minister Ishaq Dar expressed gratitude to the Saudi leadership on behalf of the government and people of Pakistan. He assured the nation that this deposit from Saudi Arabia would help improve Pakistan’s economy and pave the way for growth in the near future. Prime Minister Shehbaz Sharif also took to Twitter to show his appreciation and thank the leadership and people of Saudi Arabia, stating that the deposit reflects the Kingdom’s growing confidence in Pakistan’s economic turnaround.
Pakistan’s economy has been hit hard by various challenges, including devastating floods that occurred last summer, causing significant loss of life, damage, and displacement. Additionally, the country faced the impact of an international commodity price spike following Russia’s war in Ukraine. The new bailout package, originally signed between the IMF and Pakistan’s former Prime Minister Imran Khan in 2019, will provide much-needed relief and enable the country to address its economic woes.
The IMF’s approval of the $3 billion loan is a crucial step in this process. It is expected that the IMF’s executive board will approve the new agreement at their meeting in the United States. Pakistan is also hopeful that the board will release a crucial $1.1 billion from the bailout package. This financial support will provide the necessary stability and resources to help Pakistan rebound and set the country on a path of economic recovery.
In conclusion, Pakistan’s government warmly thanks Saudi Arabia for their timely deposit of $2 billion into the central bank. The infusion of funds will significantly bolster Pakistan’s foreign exchange reserves, providing much-needed stability during a critical time. With the approval of the new IMF loan and the release of additional funds, Pakistan’s economy is expected to witness positive growth in the near future. This support from Saudi Arabia demonstrates their confidence in Pakistan’s economic turnaround and strengthens the bond between the two nations.
