Saudi Arabia commits to help Pakistan secure critical IMF deal: minister

Saudi Arabia has conveyed to International Monetary Fund its dedication to offer financing to Pakistan, a essential assist to safe IMF funding, Pakistani junior finance minister Aisha Ghaus Pasha has mentioned.

Saudi Arabia’s $2 billion pledged in exterior financing assist to Pakistan is among the remaining situations for an IMF deal that Islamabad must avert a default.

“Apparently Saudi Arabia has committed to IMF, and IMF has indicated to us that there has been a correspondence from them,” Pasha instructed reporters in Islamabad on Thursday.

The IMF’s resident consultant didn’t instantly reply to a Reuters request for remark.

READ M0RE: Must ‘agree’ to robust IMF situations, Pakistan PM warns struggling nation

Secure assurances 

The IMF has requested Pakistan to safe assurances on exterior financing from pleasant international locations and multilateral companions to fund its stability of cost hole for this fiscal yr, which ends in June.

Islamabad has been internet hosting an IMF mission since early February to barter a sequence of coverage measures to safe $1.1 billion in funding for the cash-strapped economic system, which is on the breaking point.

The funds are a part of a $6.5 billion bailout package deal the IMF accredited in 2019, which analysts say is essential for Pakistan to avert defaulting on exterior cost obligations.

The deal will even unlock different bilateral and multilateral financing avenues for Pakistan to shore up its international trade reserves, which have fallen to 4 weeks’ price of import cowl, and assist it steer out of a stability of cost disaster.

Pasha mentioned Islamabad was additionally in talks with UAE to safe an assurance for international reserves deposits within the central financial institution. 

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Source: TRTWorld and companies