ISLAMABAD:
Saudi Arabia on Friday assured Pakistan of full financial support to address problems arising from the Middle East conflict, extending a helping hand at a time when Islamabad is paying off nearly $5 billion of its debt and trying to keep the external account stable amid a rise in the cost of imports.
The assurances came hours after Prime Minister Shehbaz Sharif also managed to get relief from local oil refiners who voluntarily handed over a portion of their windfall profits, which the Prime Minister subsequently passed on to consumers.
The Prime Minister met Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan and discussed a number of issues that Pakistan was currently facing.
Government officials said the visiting finance minister assured his country’s full financial support to Pakistan and reiterated the kingdom’s confidence in Pakistan to mediate talks between the United States and Iran.
Although no specific financial proposals were discussed in the delegation-level meeting between the prime minister and the Saudi Finance Minister, Finance Minister Muhammad Aurangzeb had discussed the proposals with his counterpart two days ago.
Pakistan had previously asked the kingdom to provide at least $5 billion in loans and another $1.2 billion a year in an oil financing facility, officials said.
The Saudi oil facility is set to expire in April and Pakistan has asked the kingdom to extend it for another five years. Pakistan is also currently drawing on a $5 billion Saudi cash deposit loan, but is seeking to at least double the amount to maintain reserves at their 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 package expired in September 2027.
The prime minister had asked Finance Minister Muhammad Aurangzeb to delay his visit to Washington by two days due to 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 World Bank.
Before his trip, the Finance Minister had a telephone conversation with his Saudi counterpart to request financial support from the kingdom.
An official document from the Prime Minister’s office said that Mohammed bin Abdullah Al-Jadaan visited Islamabad for a day and called on Prime Minister Shehbaz Sharif.
Deputy Prime Minister and External Affairs Minister Ishaq Dar and Defense Forces Chief Field Marshal 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 fondly recalled his recent cordial telephone conversation with His Royal Highness the Crown Prince. He expressed his appreciation for the Crown Prince’s deep affection towards Pakistan, as well as the Kingdom’s long-standing economic and financial support for Pakistan over the years, which had 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 had always stood shoulder to shoulder with their Saudi brothers and sisters, and that this was an enduring bond between both countries, which had been strengthened under the patronage of His Royal Highness the Crown Prince.
The prime minister emphasized Pakistan’s strong commitment to expand its cooperation with the kingdom in all spheres, particularly in trade, investment and economic development, he added.
The Saudi Finance Minister reaffirmed the determination of the Kingdom of Saudi Arabia to further strengthen the deep-rooted brotherly ties between Pakistan and Saudi Arabia, as envisaged by His Royal Highness Crown Prince Mohammed bin Salman.
