Pakistan has managed to get a package of about 8 billion dollars from Saudi Arabia. Sources said that Muftah Ismail was finalizing the procedure and it would take two weeks to prepare the document.Â
According to details, on the occasion of Prime Minister Shahbaz Sharif’s visit to Saudi Arabia, Pakistan has managed to get a reasonable package of about ? 8 billion from Saudi Arabia, which includes oil financing facility, additional funds even in the form of deposits. Or in the case of Sukuk and the current 2 4.2 billion rollover.
Top officials have confirmed to The News on condition of anonymity that technical details are being worked out in this regard and it will take two weeks to prepare all the documents after which it will be signed.
Prime Minister Shahbaz Sharif and his official delegation have left Saudi Arabia, but Finance Minister Muftah Ismail is still there and finalizing the modalities of the additional financial package.
The official said that Pakistan had asked for an increase in oil supply from 2 1.2 billion to 2. 2.4 billion, which was accepted by Saudi Arabia. It also agreed to roll over the current ?? 3 billion deposit by June 2023.
Official sources said that Pakistan and Saudi Arabia had agreed to provide an additional package of 2 2 billion through deposit or sukuk and more money would probably be provided to Pakistan.
Sources said that the total package volume will be estimated when the additional amount is finalized, this amount will be close to 8 billion dollars in total.
Saudi Arabia had deposited 3 3 billion in the State Bank of Pakistan in December, 2021. While the Saudi Oil Facility (SOF) has been operational since March, 2022, Pakistan has also been provided with a ???? 100 million facility to obtain oil.
It is also pertinent to mention here that Saudi Arabia had provided a package of 7. 7.5 billion during the N-League regime in 2013-18. During the PTI regime, Saudi Arabia provided a package of 2 4.2 billion. Now Saudi Arabia is giving additional financial package to Islamabad, while Pakistan is in dire need of it.
Pakistan’s foreign exchange reserves have shrunk by 6 6 billion to 10 10.5 billion in the last six to seven weeks. In the first nine months, the current account deficit has widened to .2 13.2 billion and the pressure to pay off external debt has increased.
Pakistan has to repay ??? 3 billion in debt in the last quarter of the current financial year (April-June). The resumption of the IMF program is considered necessary as the total external financial needs are estimated at 35 35 billion for the next financial year 2022-23, while without the IMF program this huge financial gap cannot be closed.
However, some independent economists, especially Dr Ashfaq Hassan Khan, have suggested that imports of non-essential items, including luxury cars, should be banned.
Finance Minister Muftah Ismail said in a message that he has just said goodbye to Prime Minister Shahbaz Sharif and other colleagues at Jeddah Airport. I will be in Saudi Arabia to meet with Saudi officials and begin technical talks.
