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Monday, May 23, 2022

Saudi deal

Saudi Arabia agrees to discuss extension of in term of three billion-dollar loan. There is also reports an increase in $4.2 billion in existing aid package in Pakistan to about $8 billion. It’s significant help Prime Minister Shehbaz government cope with the devastating economic crisis that PTI government It has left behind. Saudi Arabia has historically been generous in This support to Pakistan – whether cash deposits or reserves of oil on deferred payments. This new confirmation is likely to raise $3 billion. with National Bank of Pakistan via term extension. Two countries have also agreed to explore options increase funding of oil products. It may also result in supporting economic structural reforms and lead to extended package of as much as eight billion dollars. Under the proposed package, Saudi Arabia will provide a $3 billion safe box for Another one year and increase oil supplies on deferred payment up to $2.4 billion per year year.

There is also announces the issuance of Pakistani Sukuk bonds worth over 2 billion dollars that Saudi Arabia government we will purchase. Economic Crisis in Pakistan facing multifaceted. If Pakistan does manage to get $8 billion, it will be a much needed financial support to country. First, it will strengthen our dwindling foreign exchange reserves. Pakistan economy is an also surrounded by high inflation, which has a lot to do with with rolling foreign exchange reserves. Then the deficit grows. in Pakistan current an account that needs immediate help. Connected with This is also depreciating currency, which should stop its fall. Experts highlighted fact what Pakistan demands financial help of at least $15 billion in in last quarter of this fiscal year which is currently coming to an end. Doubling of oil financing mechanism and with some extra money in treasury go through sukuki and roll over of existing over four billionth facility, Pakistan may weather the storm that already on the us.

place Pakistan economy there are currently such packages play significant role — but even more important than that need for mutual cooperation in in other areas such as agriculture, education, employment, investment and trade. There is a Saudi-Pakistani Supreme Coordinating Council, which must now work diversify the scope of bilateral relations. like two countries work out some technical details, it may take a month or so before Pakistan can claim that on safe perch economically. Negotiations at the technical level will be crucial as some conditions, details may be related of which may or may not be public any time soon. This worth reminding that in December lastSaudi Arabia provided $3 billion in deposits to the State Bank. of Pakistan. Then in March this yearSaudi oil facility was also was put in place to offer Pakistan $100 million to buy oil. With this new deal almost in place for complacency; begging and borrowing for long is deprecated and has no respect internationally. new government gotta try use in new objects as a springboard to higher goals of economic independence.

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Derrick Santistevan
Derrick is the Researcher at World Weekly News. He tries to find the latest things going around in our world and share it with our readers.

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