KSA assures Pakistan of financial support

Saudi finance minister reiterates kingdom's trust in Pak mediation efforts

ISLAMABAD:

Saudi Arabia on Friday assured Pakistan of providing full financial support to deal with the issues stemming from the Middle East conflict, extending its helping hand at a time when Islamabad is making nearly $5 billion debt repayments and trying to keep external account stable amid rising import cost.

The assurances came hours after Prime Minister Shehbaz Sharif also managed to get relief from local oil refineries that voluntary surrendered a share of their windfall gains, which the premier subsequently passed on to consumers.

The prime minister met with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan and discussed with a range of issues that Pakistan was currently dealing.

The government officials said that the visiting finance minister assured his country's full financial support to Pakistan and reiterated the kingdom's trust in Pakistan in mediating talks between the US and Iran.

Although no specific financial proposals were discussed in the PM-Saudi finance minister delegation-level meeting, Finance Minister Muhammad Aurangzeb had taken up the proposals with his counterpart two days ago.

Pakistan had earlier requested the kingdom to provide at least $5 billion loan and another $1.2 billion per annum in oil financing facility, said the officials.

The Saudi oil facility is expiring in April and Pakistan has requested the kingdom to extend it for another five years. Pakistan is also currently availing $5 billion Saudi cash deposit loan but is looking to at least double the amount for maintaining the reserves at their current levels.

Pakistan is repaying $4.8 billion debt this month, including the $3.5 billion debt owed to the United Arab Emirates. In the absence of any fresh loans, the foreign exchange reserves could fall to $11.5 billion.

Originally, the UAE had assured the International Monetary Fund to maintain its financial exposure to Pakistan till the expiry of the bailout package in September 2027.

The prime minister had asked Finance Minister Muhammad Aurangzeb to delay his visit to Washington for two days due to the Saudi finance minister visit. Aurangzeb was scheduled to travel to Washington on Wednesday to attend the IMF-World Bank spring meetings.

Before his travel, the finance minister held telephonic conversation his Saudi counterpart to seek the kingdom's support financial support.

An official handout by the Prime Minister's office stated Mohammed bin Abdullah Al-Jadaan, visited Islamabad for one day and called on Prime Minister Shehbaz Sharif.

Deputy Prime Minister and Foreign Minister Ishaq Dar and Chief of Defence Forces Field Marshal Syed Asim Munir also attended the meeting along with Muhammad Aurangzeb and Petroleum Minister Ali Pervaiz Malik.

The prime minister conveyed his regards 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 appreciation for the Crown Prince's deep affection towards Pakistan as well as for the Kingdom's longstanding economic and financial support to Pakistan over the years, that had played a vital role in Pakistan's economic stability, said the Prime Minister's Office.

The prime minister reiterated that the people and Government of Pakistan had always stood shoulder to shoulder with their Saudi brothers and sisters, and this was an abiding bond between both countries, that had grown stronger under the patronage of His Royal Highness the Crown Prince.

The prime minister emphasised Pakistan's strong commitment to expanding its cooperation with the kingdom in all spheres, particularly in trade, investment, and economic development, it added.

The Saudi finance minister reaffirmed the resolve of the Kingdom of Saudi Arabia to further strengthen the longstanding deep-rooted fraternal bonds between Pakistan and Saudi Arabia, as envisioned by His Royal Highness Crown Prince Mohammed bin Salman.