ISLAMABAD: Pakistan and Saudi Arabia on Sunday said they would discuss extending the terms of a $3 billion loan to help Islamabad’s faltering economy.
The Gulf nation has long been an intelligence partner of Pakistan as well as a regular source of financial relief for successive governments.
The latest sign of support follows a visit to Saudi Arabia by new Prime Minister Shehbaz Sharif, who has inherited a crippling national debt, galloping inflation and a feeble rupee.
A joint statement said the kingdom would continue to support the Pakistani economy and had discussed “augmenting the $3 billion deposit with the central bank through term extension or otherwise”.
Saudia Arabia also pledged “to further enhance the financing of petroleum products” at a time when the South Asian country is suffering from frequent power cuts.
The statement comes after recent talks between Pakistan and the International Monetary Fund (IMF) over the release of funds under an existing $6 billion aid programme that had stalled due to concerns about the pace of reforms.
The cash-strapped nation’s foreign exchange reserves plunged below $11 billion last month.
“The little financial help we can get from any country would help us given the condition of our economy,” Dr Kaiser Bengali, a veteran economist, told AFP.
“But for how long will we run our economy on loans? This policy is not going to work even for the next five years.”
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In recent years, Saudi Arabia has provided Pakistan with $4.2 billion of support in the form of the $3 billion loan deposited with the central bank as well as $1.2 billion in deferred oil payments.
Pakistani Finance Minister Miftah Ismail who had stayed on in Saudi Arabia for “technical-level talks” was due to land back in Pakistan on Sunday evening.-AFP
APP adds: Pakistan and the Kingdom of Saudi Arabia (KSA) have affirmed their stance to consolidate security and stability, renounce violence, extremism and terrorism, support the unity and independence of the countries of the region and their territorial integrity, as well as to give priority to political solutions that bring prosperity and progress to the region and its people.
In the political context, the two sides exchanged views on issues of mutual concern in the regional and international levels, and agreed on the importance to continue coordinating their positions in a way that serves their interests, said a joint statement issued on Sunday at the conclusion of three-day official visit of Prime Minister Muhammad Shehbaz Sharif to the KSA.
The Prime Minister along with a delegation visited the KSA at the invitation of Saudi Crown Prince Muhammad bin Salman.
The two sides agreed to continue exchanging support and coordination in international organizations and forums and stressed the importance of all countries’ commitment to the United Nations Charter and the principles of international law, adherence to the principles of good neighbourliness, respect for the unity and sovereignty of states, non-interference in internal affairs, and striving to resolve disputes by peaceful means.
The Kingdom of Saudi Arabia welcomed the statements of Pakistan mentioning keenness to find a solution to all disputes with India, including the Jammu and Kashmir dispute.
The two sides stressed the importance of dialogue between Pakistan and India in order to resolve the issues between the two countries, especially the Jammu and Kashmir dispute, to ensure peace and stability in the region.
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During an official meeting between the Prime Minister and the Saudi Crown Prince, they reviewed the historical relations between the two countries and the close cooperation in various fields, as well as discussed ways to strengthen relations in all areas. In the bilateral context, the two sides stressed the importance of strengthening work through the Saudi-Pakistani Supreme Coordination Council, diversifying trade exchange between the two brotherly countries and intensifying communication between the private sector in the two countries in order to discuss trade and investment opportunities and turn them into tangible partnerships.
The KSA affirmed its continuous support to Pakistan and its economy including the discussion of augmenting the three billion USD deposit with the central bank through term extension or otherwise, and exploring options to further enhance the financing of petroleum products and supporting the economic structural reforms for the benefit of Pakistan and its people.
“Pakistan greatly appreciates the continued strong support of the Kingdom of Saudi Arabia to Pakistan,” the statement said.
The two sides also agreed to deepen the investment cooperation between the two countries, stimulate partnerships and enable investment integration opportunities between the private sector of the two countries.
They also agreed to join efforts to develop the investment environment in the two countries and support a number of investment sectors of common interest.
Copyright Business Recorder, 2022
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