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Pakistan’s Finance Minister Ishaq Dar said on Tuesday that Saudi Arabia has deposited $2 billion in Pakistan’s central bank after Islamabad reached a staff-level agreement with the International Monetary Fund on a $3 billion standby arrangement.
“The State Bank of Pakistan (SBP) has received a deposit of $2 billion from the Kingdom of Saudi Arabia,” Dar said in press statements, adding that this influx has increased foreign exchange reserves and that this will be reflected in foreign exchange reserves for the week ending July 14 ( July). “On Friday, our reserves closed at less than $10 billion, standing at around $9.67 billion, so now you can imagine them near $11.67 billion,” the minister said.
The inflows came after Islamabad signed a short-term deal with the International Monetary Fund on June 30 under a standby arrangement that would disburse $3 billion over nine months, subject to approval by the IMF’s board, which meets on July 12. Saudi Arabia. It pledged the money to Pakistan and waited for the long-awaited IMF deal to be announced before depositing it.
The fiscal support will shore up depleted foreign exchange reserves, which have fallen to barely cover a month’s worth of controlled imports.
On behalf of the prime minister and army chief, Dar said he thanked the Saudi leadership for its support.
Prime Minister Shahbaz Sharif also expressed his gratitude to Saudi Arabia and Crown Prince Mohammed bin Salman for securing financial support to Pakistan. This deposit will boost the foreign exchange reserves of Pakistan. It reflects the growing confidence of the brotherly countries and the international community in the economic transformation of Pakistan. “We remain committed to making all necessary efforts to improve Pakistan’s economy,” the Pakistani prime minister said.
Multilateral and bilateral funds were a major obstacle in the way of Pakistan’s deal with the International Monetary Fund – which had been stalled for more than nine months and expired on June 30. Government simplification of fiscal policies.
With inflation so high and foreign exchange reserves barely enough for a month of controlled imports, analysts say Pakistan’s economic crisis could escalate into debt defaults absent a bailout from the International Monetary Fund.
“The State Bank of Pakistan (SBP) has received a deposit of $2 billion from the Kingdom of Saudi Arabia,” Dar said in press statements, adding that this influx has increased foreign exchange reserves and that this will be reflected in foreign exchange reserves for the week ending July 14 ( July). “On Friday, our reserves closed at less than $10 billion, standing at around $9.67 billion, so now you can imagine them near $11.67 billion,” the minister said.
The inflows came after Islamabad signed a short-term deal with the International Monetary Fund on June 30 under a standby arrangement that would disburse $3 billion over nine months, subject to approval by the IMF’s board, which meets on July 12. Saudi Arabia. It pledged the money to Pakistan and waited for the long-awaited IMF deal to be announced before depositing it.
The fiscal support will shore up depleted foreign exchange reserves, which have fallen to barely cover a month’s worth of controlled imports.
On behalf of the prime minister and army chief, Dar said he thanked the Saudi leadership for its support.
Prime Minister Shahbaz Sharif also expressed his gratitude to Saudi Arabia and Crown Prince Mohammed bin Salman for securing financial support to Pakistan. This deposit will boost the foreign exchange reserves of Pakistan. It reflects the growing confidence of the brotherly countries and the international community in the economic transformation of Pakistan. “We remain committed to making all necessary efforts to improve Pakistan’s economy,” the Pakistani prime minister said.
Multilateral and bilateral funds were a major obstacle in the way of Pakistan’s deal with the International Monetary Fund – which had been stalled for more than nine months and expired on June 30. Government simplification of fiscal policies.
With inflation so high and foreign exchange reserves barely enough for a month of controlled imports, analysts say Pakistan’s economic crisis could escalate into debt defaults absent a bailout from the International Monetary Fund.
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