Saudi Arabia deposits $2 billion in Pakistan Central Bank ahead of IMF meeting

Story by

Eric Gyimah

Saudi Arabia government has deposited $2 billion into Pakistan’s central bank treasury.

Saudi Arabia government on Tuesday said the financial boost is much needed ahead of a critical meeting of the International Monetary Fund on a new bailout package for the South Asian country.

Pakistani Finance Minister Ishaq Dar in a video statement said the Saudi Kingdom is delivering on its promise to boost Pakistan’s foreign exchange reserves.

According to Pakistani officials, the deposit is not a loan but will remain with Pakistan’s central bank for at least a year and will support up the reserves.

The 2-billion-dollar deposit was made on the eve of the meeting of the IMF’s executive board.

The board is expected to approve a new and crucial $3 billion loan to Pakistan to help the country recover from its current economic crisis.

Ishaq Dar said the Saudi Arabia deposit has boosted the country’s foreign exchange reserves which stood at $9.6 billion as at last to $11.6.

The finance minister assured the people that Pakistan would soon witness economic recovery and growth.

“We thank the Saudi leadership on behalf of the government and people of Pakistan.

God willing, now Pakistan’s economy will witness an improvement,” Dar said.

Pakistan’s Prime Minister Shehbaz Sharif in a tweet expressed deep gratitude to the leadership and people of Saudi Arabia following announcement of the deposit.

He said the kind gesture demonstrates the kingdom’s confidence in Pakistan’s economic reversal.

Shehbaz Sharif said his government remains committed to making all necessary efforts to improve the country’s ailing economy.

The IMF in June this year agreed to a $3 billion bailout to Pakistan in badly needed relief to the country’s ailing economy.

Pakistan is anxiously counting on the IMF’s executive board to approve the nine-month agreement at a meeting in the United States on Wednesday.

The country also hopes the board endorses the release of a crucial $1.1 billion from the bailout.