Tue 11 July 2023:
Pakistan Finance Minister Ishaq Dar said on Tuesday that the State Bank of Pakistan (SBP) has received $2 billion from Saudi Arabia, in yet another boost for the ailing economy following the $3 billion Stand-by Agreement with the International Monetary Fund (IMF).
“This inflow has increased the forex reserves held by SBP and will accordingly be reflected in the forex reserves for the week ending July 14, 2023,” Dar said.
State Bank of Pakistan (SBP) has received deposit of $2 billion from the Kingdom of Saudi Arabia. This inflow has increased the forex reserves held by SBP and will accordingly be reflected in the forex reserves for the week ending 14July2023.
— Ishaq Dar (@MIshaqDar50) July 11, 2023
“On behalf of the prime minister and army chief, I extend our heartfelt thanks to the leadership of the Kingdom of Saudi Arabia for their great gesture and support by placing the said deposit of $2 billion with the State Bank of Pakistan,” the minister added.
Prime Minister Shehbaz Sharif also expressed his gratitude to Saudi Arabia and Crown Prince Mohammad Bin Salman for ensuring financial support to Pakistan.
“This deposit will strengthen Pakistan’s foreign exchange reserves. It reflects the growing confidence of our brotherly countries and the international community in Pakistan’s economic turnaround. We remain committed to making all necessary efforts to improve Pakistan’s economy,” the premier said.
On behalf of the people of Pakistan, I would like to extend my deep gratitude to the leadership and brotherly people of the Kingdom of Saudi Arabia for the US$2 billion deposit with the State Bank of Pakistan. I would like to especially thank my brother Saudi Crown Prince & Prime…
— Shehbaz Sharif (@CMShehbaz) July 11, 2023
Teetering on the cusp of a sovereign debt default, Pakistan secured a last-gasp $3bn IMF bailout on the last day of June, though it still needs approval from the IMF board, which is meeting on Wednesday.
The bailout deal was originally signed between the IMF and Pakistan’s former Prime Minister Imran Khan in 2019 and was to expire on June 30 when the new, breakthrough agreement was announced.
Under the nine-month arrangement, Pakistan will receive about $1.1bn upfront and the IMF will stagger disbursements of the rest.
The IMF deal will unlock more bilateral and multilateral financing in addition to the money from Saudi Arabia, and Dar has said he expects Pakistan’s foreign exchange reserves to rise to $15bn by the end of this month.
Pakistan’s economy has recently taken numerous significant knocks, including the terrible floods last summer, which killed 1,739 people, caused $30 billion in damage, and impacted millions.
The economy was also hurt by a jump in international commodity prices as a result of Russia’s war in Ukraine.
SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES
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