Army Chief General Syed Asim Munir travelled to Saudi Arabia on his first official visit abroad since his appointment, as Pakistan was seeking another financial bailout package from the kingdom to shore up its depleting foreign reserves, Inter-Services Public Relations (ISPR) announced on Thursday.
The ISPR – the media wing of the military – confirmed that the army chief was undertaking a visit to Saudi Arabia and the United Arab Emirates (UAE) from January 4 to 10.
“The COAS will be meeting the senior leadership of both brotherly countries to discuss matters of mutual interest, military-to-military cooperation and bilateral relations, focusing on security-related subjects,” read an official handout of the ISPR.
No further details were provided. The visit, first by Gen Asim as the army chief, comes at a crucial juncture when Pakistan is facing yet another balance of payment crisis. The country’s foreign reserves have come down to $5.8 billion, barely enough to cover one month of import bill.
With the IMF programme hanging in the balance, Pakistan is hoping to secure another financial assistance package from Saudi Arabia and the UAE to avoid a default.
Observers believe that the army chief’s visit will play a crucial rule and may pave the way for the much-needed financial assistance. Finance Minister Ishaq Dar claimed on Wednesday that Saudi Arabia would soon extend the financial package.
The Army chief is expected to meet the Saudi leadership to discuss a range of issues. including defence ties and other regional security matters. On the first day of his trip, the army chief held talks with Saudi Defence Minister Prince Khalid bin Salman bin Abdulaziz.
At the outset of the meeting, according to the Saudi media, Prince Khalid congratulated Gen Asim on his appointment as the new Chief of Army Staff of Pakistan.
During the meeting, they emphasised the strength and durability of bilateral relations, and discussed military and defence cooperation, and ways to support and enhance them, in addition to discussing the most important regional and international issues of common interest.
The meeting was attended by Saudi Chief of General Staff Lt-Gen Fayyad bin Hamed Al-Ruwaili; Assistant Defence Minister Talal bin Abdullah Al-Otaibi, and a number of Saudi and Pakistani military and civilian officials.
Pakistan and Saudi Arabia have long-standing strategic and defence cooperation. Riyadh has often come to Pakistan’s rescue during the economic crises. It has provided much-needed financial assistance in the last five years to help keep Pakistan’s economy afloat.
Saudi Arabia has already rolled over a $3 billion safe deposit that was due for repayment in December last year. Pakistan is seeking another $3 billion along with oil on deferred payment facility. Unlike the past, Pakistan’s friends are now reluctant to provide free bailouts or financial assistance without certain conditions.
These countries seem to have a tacit understanding with the IMF and other international lenders to work in tandem on Pakistan. Therefore, it remains to be seen if Saudi Arabia provides funding without Pakistan first reviving the IMF programme.
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