Pakistan seeks $4.2 billion from Saudi Arabia

ISLAMABAD: Finance Minister Ishaq Dar on Thursday sought $4.2 billion from Saudi Arabia after the foreign exchange reserves fell critically low, ARY News reported citing sources.

According to sources, the federal finance minister Ishaq Dar requested Saudi Arabia to urgently provide $4.2 billion package to Pakistan. 

The government will buy oil and fertilizers worth $1.2 billion from Saudi Arabia on deferred payments, sources said.

The request has been forwarded to his excellency crown prince Muhammad Bin Salman. 

Read more: SAUDI ARABIA EXTENDS TERM OF $3BN DEPOSIT: SBP

The country’s foreign exchange reserves have fallen to $6.7 billion for the first time since January 2019, which is not enough to meet the $8.8 billion principal and interest payments during the current fiscal year, sources added.

Earlier, Saudi Arabia extended the term for a $3 billion deposit it had made to Pakistan’s central bank, announced SBP.

The central bank said that the extension of the term of the deposit “is a continuation of the support provided by the government of Saudi Arabia to the Government of Pakistan.”

Pakistan is looking to rein in one of Asia’s highest inflation rates and stave off a current-account crisis, sources said.