Friday, September 30, 2022

Pakistan’s new Prime Minister wins $8 billion Saudi bailout for the country’s cash-strapped economy: Reports

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According to a media source, during Pakistan Prime Minister Shehbaz Sharif’s visit to Saudi Arabia, a deal was reached under which the Gulf country will provide Islamabad with a financial assistance package of roughly USD 8 billion.

The financial package will assist Pakistan in replenishing its decreasing foreign exchange reserves and reviving its ailing economy. High inflation, dwindling foreign exchange reserves, a widening current account deficit, and a sinking currency have been among the country’s mounting economic woes.

To avoid further depletion of foreign currency reserves, Pakistan wants financial assistance of USD 9-12 billion till June 2022.

According to The News daily, the financial package will comprise a doubling of the oil finance facility, more money in the form of deposits or Sukuks, and a rollover of the existing USD 4.2 billion facilities.

“However, technical aspects are being worked out,” the article added, citing top official sources. “It will take a few of weeks to get all documents ready.”

While Prime Minister Nawaz Sharif has departed Saudi Arabia, Pakistan’s finance minister Miftah Ismail has remained in the country to finalise the financial deal.

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