Business

Saudi Arabia is ready to invest more in Pakistan during a currency crisis.

Saudi's ready to invest

Mohammad Bin Salman, the crown prince of Saudi Arabia, is advising on possible increases in investment and deposits of up to $10 billion.

The Prime Secretary Shehbaz Sharif (left) during a meeting with Saudi King Prince Mohammad Bin Salman. — SPA/File

Crown Prince Mohammad Bin Salman of Saudi Arabia is eager to contribute additional money to Pakistan. Requesting on Tuesday that the government take into account increasing the amount of money the nation has invested in Pakistan to $10 billion. This would provide the government with a significant boost in its efforts to stabilize its declining economy.

Investments by Riyadh’s company in Pakistan were previously made public on August 25, 2022.

Saudi's ready to invest

Saudi Arabia is ready to invest more in Pakistan during a currency crisis.

According to a report released through the Saudi Press Agency, The Saudi leader also instructed the Saudi Fund for Development (SFD) to look into raising the deposit amount by $2 billion, bringing it to $5 billion, which demonstrates the Kingdom’s support for the economy of Pakistan and its people in the midst of the escalating the crisis in its currency.

In month November, The Saudi Fund extended the term for the deposit of $3 billion at the State Bank of Pakistan (SBP) that was scheduled to expire on five December.

To receive $3 billion to deposit into the central bank’s account, the SBP and SFD agreed in November 2022. Aiming to boost its foreign exchange holdings.

State-run media in Saudi Arabia said that Crown Prince Mohammed has ordered officials to take size of deposit into consideration. Extended initially on December 2, 2022, to $5 billion.

 

“This fit in with the existing communication’s parameters. Prime Minister of Pakistan Muhammad Shehbaz Sharif and HRH the Crown Prince “the SPA included

The announcement comes just a day following the Chief of Army Staff General Asim Munir’s meeting with the crown prince in his first official trip abroad for the United Kingdom.

Due to dwindling foreign exchange reserves, Pakistan is currently experiencing a severe economic crisis. Which had fallen to $4.5 billion, which is adequate to import goods for three weeks.

Islamabad, on the other hand, is putting a lot of effort into restarting the IMF loan program. Which has been pending for a while.

A Pakistani delegation met with IMF representatives in Geneva on Monday at the end of the donor’s conference. The board reiterated its determination to complete the program.

IMF representatives and Finance Minister Muhammad Ishaq Dar “addressed challenges to regional economies in the context of climate change.” After the meeting’s completion, the finance ministry issued a statement.

“[The] finance minister reiterated the commitment to complete the Fund program,” it said.

The lender initially planned to release $1.1 billion in November of last year but has yet to accept it. The scant foreign exchange reserves left in Pakistan can only cover a month’s worth of imports.

 

 

 

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