ISLAMABAD: The Saudi Arabian government has linked the provision of additional $3 billion deposits to revival of Pakistan’s IMF programme.
Saudi Arabia would provide more financial assistance in the form of deposits only if Pakistan rejoins IMF programme.
Last year, Saudi Arabia deposited $3 billion in the State Bank of Pakistan for one year at 4 percent markup under a support package for strengthening the country’s foreign reserves. The support package also included a $1.2 billion oil loan facility, The News reported today.
A statement followed a visit by Prime Minister Shehbaz Sharif to Saudi Arabia earlier this month said the two countries will discuss the possibility of supporting the kingdom’s $3 billion deposit in Pakistan’s central bank by extending its term “or through other options”.
Meanwhile, IMF Resident Director in Islamabad Esther Perez Ruiz said that the IMF team is expected to hold discussion with Pakistani officials about seventh review in this month. She, however, neither indicated the date of talks nor the venue of meetings. Media reports, nonetheless, indicated that IMF and Pakistani officials would hold discussions in Doha, Qatar, for the seventh review of economy and resumption of the IMF programme on May 18, 2022.
IMF Resident Representative in Pakistan said, “the IMF expects to field a mission during May to discuss with the authorities policies to further the EFF’s 7th review. Engagement remains constructive.”
