ISLAMABAD:
Saudi Arabia on Friday assured Pakistan that it would provide full financial support to tackle issues arising from the Middle East conflict, extending a helping hand at a time when Islamabad is repaying nearly $5 billion of its debt and trying to maintain stability in its external balance amid rising import costs.
These assurances came hours after Prime Minister Shehbaz Sharif also managed to secure relief from local oil refineries, who voluntarily gave up part of their windfall gains, which the prime minister then passed on to consumers.
The Prime Minister met with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan and discussed a range of issues currently facing Pakistan.
Government officials said the visiting finance minister assured his country’s full financial support to Pakistan and reiterated the kingdom’s confidence in Pakistan in mediating the US-Iran talks.
Although no specific financial proposals were discussed in the delegation-level meeting of the Prime Minister and the Saudi Finance Minister, Finance Minister Muhammad Aurangzeb had taken up these proposals with his counterpart two days ago.
Pakistan had previously asked the kingdom to provide it with a loan of at least $5 billion and an additional $1.2 billion per year in oil financing facility, the officials said.
The Saudi oil facility expires in April and Pakistan has asked the kingdom to extend it for another five years. Pakistan also currently benefits from a $5 billion Saudi cash deposit loan, but is seeking to at least double that amount to maintain reserves at current levels.
Pakistan is repaying $4.8 billion in debt this month, including $3.5 billion in debt to the United Arab Emirates. In the absence of new loans, foreign exchange reserves could fall to $11.5 billion.
The UAE had originally assured the International Monetary Fund that it would maintain its financial exposure to Pakistan until the bailout expired in September 2027.
The Prime Minister had asked Finance Minister Muhammad Aurangzeb to delay his visit to Washington by two days in view of the visit of the Saudi Finance Minister. Aurangzeb was scheduled to travel to Washington on Wednesday to attend the spring meetings of the IMF and the World Bank.
Before his trip, the Minister of Finance had a telephone conversation with his Saudi counterpart to seek financial support from the kingdom.
An official document from the Prime Minister’s Office states that Mohammed bin Abdullah Al-Jadaan visited Islamabad for a day and called on Prime Minister Shehbaz Sharif.
Deputy Prime Minister and Foreign Minister Ishaq Dar and Chief Marshal of Defense Forces Syed Asim Munir also attended the meeting along with Muhammad Aurangzeb and Oil Minister Ali Pervaiz Malik.
The Prime Minister conveyed his greetings to the Custodian of the Two Holy Mosques, His Majesty King Salman bin Abdulaziz Al Saud, and His Royal Highness Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud.
The Prime Minister recalled with emotion his recent cordial telephone conversation with His Royal Highness the Crown Prince. He expressed appreciation for the Crown Prince’s deep affection for Pakistan as well as the Kingdom’s long-standing economic and financial support for Pakistan over the years, which has played a vital role in Pakistan’s economic stability, the Prime Minister’s Office said.
The Prime Minister reiterated that the people and government of Pakistan have always stood by their Saudi brothers and sisters, and this is a permanent bond between the two countries, which has been strengthened under the patronage of His Royal Highness the Crown Prince.
The Prime Minister underlined Pakistan’s strong commitment to expanding cooperation with the kingdom in all areas, including trade, investment and economic development, the statement added.
The Saudi Finance Minister reaffirmed the determination of the Kingdom of Saudi Arabia to further strengthen the long-standing, deep-rooted fraternal ties between Pakistan and Saudi Arabia, as envisioned by His Royal Highness Crown Prince Mohammed bin Salman.
