ISLAMABAD:
Saudi Arabia on Friday assured Pakistan of full financial support to deal with the problems stemming from the conflict in the Middle East, extending its helping hand at a time when Islamabad is making nearly $5 billion in debt repayments and trying to keep the external account stable amid rising import costs.
The assurances came hours after Prime Minister Shehbaz Sharif also managed to get relief from local oil refineries, which voluntarily surrendered a portion of their windfalls, which the prime minister subsequently passed on to consumers.
The Prime Minister met with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan and discussed a number of issues currently being addressed by Pakistan.
Government officials said the visiting finance minister assured his country’s full financial support to Pakistan and reiterated the kingdom’s confidence in Pakistan in brokering talks between the US and Iran.
Although no specific economic proposals were discussed in the delegation-level meeting between the prime minister and the Saudi finance minister, Finance Minister Muhammad Aurangzeb had taken up the proposals with his counterpart two days ago.
Pakistan had earlier requested the kingdom to provide at least $5 billion in loans and another $1.2 billion a year in oil financing facility, the officials said.
The Saudi oil facility expires in April, and Pakistan has requested the kingdom to extend it for another five years. Pakistan is also currently using $5 billion of Saudi cash deposit loans, but is looking to at least double the amount to maintain reserves at their current level.
Pakistan is repaying $4.8 billion in debt this month, including $3.5 billion owed to the United Arab Emirates. In the absence of new loans, foreign exchange reserves could fall to $11.5 billion.
Initially, the UAE had assured the International Monetary Fund to maintain its financial exposure to Pakistan until the end of the bailout in September 2027.
The Prime Minister had asked Finance Minister Muhammad Aurangzeb to postpone his visit to Washington for two days due to the Saudi Finance Minister’s visit. Aurangzeb was scheduled to travel to Washington on Wednesday to attend the IMF-World Bank spring meetings.
Before his trip, the finance minister held a telephone conversation with his Saudi counterpart to seek the kingdom’s support for financial support.
An official release from the Prime Minister’s Office said that Mohammed bin Abdullah Al-Jadaan visited Islamabad for a day and called on Prime Minister Shehbaz Sharif.
Deputy Prime Minister and Foreign Minister Ishaq Dar and Chief of Defense Forces Field Marshal Syed Asim Munir also attended the meeting along with Muhammad Aurangzeb and Petroleum Minister Ali Pervaiz Malik.
The Prime Minister conveyed his greetings to the Custodian of the Two Holy Mosques, His Majesty King Salman bin Abdulaziz Al Saud and His Royal Highness Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud.
The Prime Minister recalled with pleasure his recent cordial telephone conversation with HRH the Crown Prince. He expressed appreciation for the Crown Prince’s deep devotion to Pakistan as well as the Kingdom’s long-standing economic and financial support to Pakistan over the years, which had played a vital role in Pakistan’s economic stability, the Prime Minister’s Office said.
The Prime Minister reiterated that the people and government of Pakistan had always stood shoulder to shoulder with their Saudi brothers and sisters and this was an enduring bond between both countries which had grown stronger under the patronage of His Royal Highness the Crown Prince.
The Prime Minister emphasized Pakistan’s strong commitment to expand its cooperation with the Kingdom in all areas, especially in trade, investment and economic development, it added.
The Saudi Finance Minister affirmed the Kingdom of Saudi Arabia’s decision to further strengthen the long-standing deep-rooted fraternal ties between Pakistan and Saudi Arabia as envisioned by His Royal Highness Crown Prince Mohammed bin Salman.
