JEE News reported on Thursday that Saudi Arabia will provide financial support and aid to Pakistan as it helps expand alliances with countries struggling due to rising inflation.
This was said by Saudi Arabia’s Finance Minister Muhammad Al-Jadaan during a press conference in Riyadh. He said that the Saudi government will continue to help Pakistan in every possible way.
KSA has taken several steps to provide financial support to Pakistan to strengthen its ties as the cash-strapped country desperately seeks support from international partners.
The finance minister also said that Riyadh is also looking to invest more in Egypt and plans to launch huge deals in Turkey.
He said that our relations with Turkey are improving a lot and we hope that investment opportunities will be available.
“We have started investing aggressively in Egypt and we will continue to look at investment opportunities and that is more important than deposits. Deposits can be withdrawn but investments remain.
$3 billion in deposits
Earlier this month, Saudi Arabia extended a $3 billion deposit period to boost foreign currency reserves and help Pakistan cope with the economic impact of the devastating floods.
The State Bank of Pakistan said in its statement that “Saudi Fund for Development (SFD) has extended the term of deposit provided by the Kingdom of Saudi Arabia to the State Bank of Pakistan in the amount of $3 billion”.
The SBP added that the extension of the deposit period was “provided by Riyadh to Pakistan to shore up foreign currency reserves and help the country weather the economic impact of the COVID-19 pandemic”. “Continuity of Support”.
The deposit has also contributed to Pakistan’s objective of “meeting external sector challenges and achieving sustainable economic growth”.
In September this year, the Saudi Fund for Development (SFD) confirmed the rollover of deposits for one year. It was expected to mature on December 5.
Depletion of reserves
Pakistan is in desperate need of funds as the country’s foreign exchange reserves with the central bank fell by $784 million to $6.7 billion as of December 2.
The shortfall means reserves have fallen further from November’s barely a month’s worth of import cover, even as it battles decades-high inflation and struggles to secure International Monetary Fund (IMF) funding. Is.
The country’s foreign exchange reserves fell below the $7 billion level for the first time since January 2019. Current reserves are about $6.7 billion as against $6.6 billion as on January 18, 2019.
