Cash-strapped Pakistan seeks $4.2b from Saudi Arabia
With Pakistan short of funds for critical inputs, Federal Finance Minister Ishaq Dar appealed to Kingdom of Saudi Arabia for additional financial support of around $4.2 billion.
With the country’s reserves with the State Bank having plummeted to $6.7 billion after having paid around $1 billion in a decade old sukuk bond, the country’s coffers are all but empty. Most of the money showing up in the reserves was static funds which have been parked in Pakistani accounts to bolster it above default levels but it is not money that Pakistan can use.
A proposal has now been sent to Saudi Arabia to secure additional assistance of $3 billion for the depleting reserves of Pakistan.
On top of the request for $3 billion, a further $1.2 billion will be obtained to procure critical goods such as oil and fertilizer.
The request is now expected to be considered by Saudi Crown Prince and Prime Minister Mohammed bin Salman.
Earlier, Federal Minister of State for Finance Aisha Ghaus Pasha has said that discussions over securing additional financial assistance and support to purchase stocks of oil and petroleum products are being discussed with Saudi Arabia and has expressed gratitude towards Riyadh for their continuous support and cooperation.
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