China, Saudi Arabia to provide USD 13 Billion to Pak : Pak FM
After Saudi Arabia’s visit, the Finance minister of Pakistan said that they assured to consider Pakistan’s request for an additional USD 3 billion in deposits and jacking up the oil facility on deferred payment by an additional USD 1.2 billion.
Besides, an additional amount of USD 4.2 billion would be considered by Saudi Arabian authorities.
He said that Saudi Arabia would also roll over existing deposits of USD 3 billion and their oil facility of USD 1.2 billion on deferred payment (USD100 million on monthly basis) would continue till June 2023.
Therefore, the total Saudi package is expected to touch USD 8.4 billion. To another query, the minister said that Saudi Crown Prince Muhammad Bin Salman is going to visit Pakistan within the ongoing month.
Pakistan’s Finance Minister Ishaq Dar on Saturday said that China and Saudi Arabia will be providing USD 13 billion financial package to Islamabad.
China and Saudi Arabia will together provide an additional amount of USD 8.8 billion and USD 4.2 billion, respectively.
“China and Saudi Arabia have given assurances to Pakistani delegations under Prime Minister Shehbaz Sharif during recent visits that they will take care of Islamabad’s financial requirements till June 2023.
Now the real effective exchange rate (REER) in terms of rupee against the US dollar has come down to Rs190 against the US dollar and no one will be allowed to play with our exchange rate,” said Dar.
During PM’s recent visits, China and Saudi Arabia has assured to take care of Islamabad’s financial requirements till June 2023.
This is in addition to the rollover of sovereign loan deposits, additional rollovers, commercial loans, additional SWAPS and jacking up oil facilities on deferred payment in line with the International Monetary Fund (IMF) agreement.
Both financial packages will ease the struggling economy of Pakistan as the foreign currency reserves held by the State Bank of Pakistan stand at USD 8.9 billion at the moment.
Dar further said that China assured Pakistan that they would roll over USD 4 billion sovereign rollover deposits on all coming due dates.
The Chinese authorities, he said, also assured that the commercial loans of USD 3.3 billion will also be provided in due course of time.
He said that China also granted a green signal for jacking up the SWAPS amount by providing an additional USD 1.45 billion so the total Chinese package would go up to USD 8.8 billion for the ongoing financial year. The Bank of China, he said, had already provided USD 200 million recently.
