Pakistan Offered $6 Billion To By Saudi Arabia Amid Economic Crisis

Pakistan Offered  $6 Billion To By Saudi Arabia Amid Economic Crisis

Pakistan Offered  $6 Billion To By Saudi Arabia Amid Economic Crisis 

New Delhi: On Tuesday, the government of Pakistan said that, Saudi Arabia has agreed to give Pakistan $3 billion in foreign currency support for a year and a further loan worth up to $3 billion in deferred payments for oil imports to help stave off a current account crisis.

The total exceeds of $6 billion forecasts by analysts and will likely reduce the size of any bailout Pakistan receives from the IMF with whom it is currently engaged in talks on a rescue package.

The agreement came after Imran Khan, the new Pakistani Prime Minister attended a Saudi investment conference that has been boycotted by several other leaders over the death of a dissident Saudi writer at the country's consulate in Istanbul.

The former cricketer had said before departing that his country is "desperate" to shore up its foreign currency reserves, which are at a four-year low, equivalent to less than two months' imports and barely enough to make its debt repayments through the rest of the year.

This month, Asad Umar finance minister requested talks with the IMF for the country's second bailout in five years. The team of IMF is due to visit Pakistan to open negotiations on Nov. 7.

However, Imran Khan had sought to avoid going to the International Monetary Fund and still wants to at least reduce the size of any bailout by appealing to "friendly countries" for bilateral financial support.

Also Read: Imran Khan Says, Will Reach Out To India Again After 2019 Elections

Last Month, Khan had visited Saudi Arabia in his first overseas trip since taking office in August, but that trip failed to produce any significant assistance, despite Pakistani media reports of agreements on deferred oil payments.

On Tuesday, Pakistan's Foreign Ministry said that the latest visit had met with success.

"It was agreed Saudi Arabia will place a deposit of $3 billion for a period of one year as balance of payment support," the ministry said in a statement.

"It was also agreed that a one year deferred payment facility for import of oil, up to $3 billion, will be provided by Saudi Arabia. This arrangement will be in place for three years, which will be reviewed thereafter."

Next Week, Khan is scheduled to visit China .

The officials of Pakistan have been concerned the US, which has fallen out with Islamabad, will push the IMF to impose harsh conditions on Pakistan as part of any bailout.

The analyst of Pakistan say reducing the size of the bailout package needed from the IMF would shore up Pakistan's weak position during negotiations with the fund.

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