Saudi Arabia has agreed to produce oil price $3 billion in secure deposits and $1.2 billion and $1.5 billion on deferred funds to cash-strapped Pakistan.
The formal announcement concerning the settlement reached throughout Prime Minister Imran Khan’s go to to Saudi Arabia this week will probably be made by Shaukat Tarin, Adviser to the Prime Minister on Finance and Revenue, and Energy Minister Hammad Azhar, Dawn newspaper reported.
Information Minister Fawad Chaudhry took to Twitter to announce the help being supplied by the Saudi Arabian authorities.
“Saudi Arabia’s announcement was supported by US$3 billion in deposits with Pakistan’s central bank and refined petroleum product financing with US$1.2 billion during the year,” he stated in a tweet.
The report quoted an official as saying that the Saudi authorities would instantly deposit $3 billion into Pakistan’s account for a 12 months and maintain it operational at the least till the completion of the International Monetary Fund (IMF) program in October 2023.
Pakistan and the IMF had signed a $6 billion deal in July 2019, however this system obtained derailed in January 2020 and was reinstated someday in March this 12 months earlier than being derailed once more in June.
There was no severe dialogue between the 2 sides from June to August.
In addition, the Saudi authorities will present crude oil to Islamabad on a deferred fee of as much as $1.5 billion per 12 months, the report stated.
In 2018, Saudi Arabia additionally supplied $3 billion in money deposits and promised a $3 billion oil facility to assist Pakistan enhance its international trade reserves in 2018.
However, as bilateral relations deteriorated later, Islamabad needed to return $2 billion out of the $3 billion deposit.
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With inputs from TheIndianEXPRESS
