Pakistan’s economy received a significant boost as the State Bank of Pakistan (SBP) received a deposit of $2 billion from Saudi Arabia. This development comes as another positive stride for the country following the recent $3 billion Stand-by Agreement with the International Monetary Fund (IMF). The infusion of funds aims to bolster Pakistan’s foreign exchange reserves and instill confidence in its economic turnaround. “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,” said PM Shehbaz.
A Gesture of Support from Saudi Arabia
Finance Minister Ishaq Dar confirmed that the State Bank of Pakistan had received $2 billion from Saudi Arabia, contributing to the country’s foreign exchange reserves. The inflow of funds will be reflected in the forex reserves for the week ending 14th July 2023. Minister Dar expressed gratitude on behalf of Prime Minister Shehbaz Sharif and Army Chief General Asim Munir, acknowledging the Kingdom of Saudi Arabia’s leadership for their support. “On behalf of the prime minister and the 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 SBP,” the minister said.
$2 billion From Saudi Arabia to Strengthen Pakistan’s Economic Position
Prime Minister Shehbaz Sharif appreciated Saudi Arabia and Crown Prince Mohammad Bin Salman for their unwavering support. The $2 billion deposit will bolster Pakistan’s foreign exchange reserves, instilling confidence in the country’s economic stability. The prime minister highlighted the growing confidence of brotherly countries and the international community in Pakistan’s economic turnaround. He commended Minister Dar and Chief of Army Staff General Asim Munir for their efforts in securing the financial support.
The financial injection from Saudi Arabia will act as a timely reinforcement for Pakistan’s depleting foreign exchange reserves, which had dipped to cover only a month of controlled imports. This support aligns with the ongoing negotiations with the International Monetary Fund, where Pakistan aims to secure a $3 billion Stand-by Arrangement to alleviate the country’s financial crisis. The IMF executive board is set to review the agreement on 12th July, further strengthening Pakistan’s position.