Saudi Arabia 'assures' IMF of $2 billion deposits to Pakistan

ISLAMABAD: The International Monetary Fund (IMF) has confirmed that it has received confirmation from Saudi Arabia on $2 billion in additional deposits to Pakistan, ARY News reported, quoting sources.

Islamabad has been negotiating with the IMF since the end of January for the release of $1.1 billion from a $6.5 billion bailout package agreed upon in 2019.

To unlock the funding, the government has cut back on subsidies, removed an artificial cap on the exchange rate, added taxes and raised fuel prices.

Sources within the finance ministry confirmed that the lender had informed the Pakistani authorities about the development.

They further said that the Saudi authorities are all set to make a public announcement, probably during the upcoming visit of Prime Minister Shehbaz Sharif to the kingdom.

It may be noted that the IMF had demanded of the Pakistani government to get a written guarantee from the friendly countries for the deposit.

Sources earlier said that Saudi Arabia and UAE had sought some time to assure the IMF regarding the deposit.