Pakistan Secures $6bn Aid Package From Saudi Arabia

Hannah Rogers
October 26, 2018

Prime Minister Imran Khan said Wednesday that Saudi Arabia's Dollars 6 billion assistance package has eased pressure on Pakistan's foreign exchange reserves and exuded confidence that the country will emerge stronger and more prosperous in the coming years.

He travelled to the Kingdom along with his key cabinet members to Riyadh where he attended the Future Investment Initiative Conference.

"It was agreed Saudi Arabia will place a deposit of $3 billion for a period of one year as balance of payment support", the ministry said in a statement.

Saudi Arabia has stepped forward with a $6 billion bailout package for Pakistan's ailing economy.

In a tweet on return from Saudi Arabia, the Minister said Prime Minister has been introduced as a man of rules, fearless and courageous ruler in Muslim Ummah.

The previous provincial government of Punjab also mismanaged various accounts and heads, he said. "For this reason they are joining hands to make a front against the government in a bid to save their skin", Khan said. Days before Khan's visit to Riyadh, Pakistan's' State Bank announced that inflation in the coming year would double, reaching 7.5 percent, while the country is likely to miss its expected growth target of 6.2 percent.

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He said Pakistan is endowed with enormous resources and potential and it will make progress at a rapid pace once corruption is curtailed.

In an interview with ILNA published on Tuesday, Qassemi said Tehran expects the new Pakistani government to successfully deal with the incident and take positive measures toward Iran, which has been Islamabad's "good neighbor". He said, "We could go into default but the "tremendous" financial package from Saudi Arabia has relieved our burden".

In his victory speech after the July elections, Khan had expressed his willingness to improve Pakistan's ties with India and said that his government would like the leaders of the two sides to resolve all disputes, including the core issue of Kashmir through talks.

He further said there were great investment opportunities in Pakistan, and the Pakistani community was playing important role in the development of Saudi Arabia. "Unless we get loans from friendly countries or the International Monetary Fund we actually won't have in another two or three months enough foreign exchange to service our debts or to pay for our imports".

"Saudi Arabia has its military requirements and there is a level of trust in the Pakistan Army, but [the ongoing standoff] is going to become another troubled area for Pakistan".

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