New Pak PM secures $8 billion Saudi bailout for cash-strapped country: Report

During the visit of Pakistan Prime Minister Shehbaz Sharif to Saudi Arabia, an agreement was secured in accordance with what will be given by the Gulf State to Islamabad around USD 8 billion, according to media reports.

The financial package will help Pakistan increase forex reserves and revive the sick economy. The country has faced increasing economic challenges, including high inflation, shear forex reserves, wide -expressed current balance sheet deficits and depreciation currencies.

Pakistan needs financial assistance of USD 9-12 billion until June 2022 to prevent depletion of further foreign currency reserves.The financial package will include the doubling of oil financing facilities, additional money either through deposits or sukuk and rolling from the existing USD 4.2 billion, reported newspaper.

However, technical details are being worked on and will take several weeks to prepare all documents,” the report said, quoting an official source.

While PM Sharif has left Saudi Arabia, Pakistani Finance Minister Miftah Ismail has remained returning to complete the financial package.

In December 2021, Saudi Arabia gave 3 billion deposits to the Pakistani State Bank. Saudi oil facilities have been operational since March 2022, giving Pakistan 100 million USD to get oil.

In the last term of office of the Pakistani Muslim League government (N) from 2013-18, Saudi Arabia had given Pakistan a USD 7.5 billion package.

Under the previous regime led by Imran Khan, Saudi Arabia provided a package of USD 4.2 billion, including a deposit of USD 3 billion and an oil facility of USD 1.2 billion for one year and connected it with the IMF program.