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Pakistan secures $8bn package from Saudi Arabia

Pakistan secures $8bn package from Saudi Arabia​

Pakistan had proposed doubling of the oil facility from $1.2 billion to $2.4 billion and Kingdom of Saudi Arabia agreed to it, an official said​


By Mehtab Haider
May 01, 2022


Crown Prince Mohammed bin Salman receives PM Shehbaz at Al-Salam Royal Palace Jeddah on April 30, 2022. Photo: Twitter/PML_N


Crown Prince Mohammed bin Salman receives PM Shehbaz at Al-Salam Royal Palace Jeddah on April 30, 2022. Photo: Twitter/PML_N

ISLAMABAD: Pakistan has secured a "sizeable package" of around $8 billion from Saudi Arabia, including doubling of the oil financing facility, additional money either through deposits or Sukuks and rolling over of the existing $4.2 billion facilities during the visit of Prime Minister Shehbaz Sharif.

"However, technical details are being worked out and will take a couple of weeks to get all documents ready and signed," top official sources privy to the development informed The News on Saturday. Prime Minister Shehbaz Sharif and his official entourage have left Saudi Arabia but Minister for Finance Miftah Ismail is still staying there to finalize the modalities of the increased financial package.

Sharing the salient features of the financial package, the official said that Pakistan had proposed doubling of the oil facility from $1.2 billion to $2.4 billion and Kingdom of Saudi Arabia agreed to it. It was also agreed that the existing deposits of $3 billion would be rolled over for an extended period up to June 2023.

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"Pakistan and KSA discussed an additional package of over $2 billion either through deposits or Sukuk and it is likely that even more money will be provided to Islamabad," said official sources, adding that the size of the total package would be determined when additional money was finalized. Saudi Arabia had provided $3 billion deposits to the State Bank of Pakistan in December 2021 while the Saudi oil facility was operationalised from March 2022 whereby Pakistan was provided $100 million to procure oil. Saudi Arabia had provided a $7.5 billion package during the last tenure of the PMLN government (2013-18). Under the PTI-led regime, Saudi Arabia had provided a package of $4.2 billion, including $3 billion deposits and $1.2 billion oil facility for one year and linked it with the IMF programme.

Now Saudi Arabia has provided an enhanced financial package to Pakistan when its economy is in dire straits and the country is facing a balance of payment crisis. The country’s foreign exchange reserves held by the State Bank of Pakistan depleted by $6 billion in the last six to seven weeks and nosedived to $10.5 billion at the moment. With the rising current account deficit at $13.2 billion in the first nine months and pressing external loan repayment requirements, Pakistan requires financial injections of $9 to $12 billion till June 2022 to avert further depletion of foreign currency reserves. Pakistan will have to repay external debt servicing of $3 billion in the last quarter (April-June) of the current fiscal year.

The revival of the IMF programme is considered as imperative because the gross external financing requirement is estimated to the tune of $35 billion during the next fiscal year 2022-23 and without the backing of the programme, the huge financing gap cannot be bridged. However, independent economists, like Dr Ashfaque Hasan Khan, suggest a ban on the import of luxury cars and other unessential items for saving dollars.

Later in a tweet, Miftah Ismail said, "Just said goodbye to Prime Minister Shehbaz Sharif and other colleagues at Jeddah Airport, who are on their way to Islamabad after a brief stopover in Abu Dhabi to meet Crown Prince Muhammad Bin Zayed. I remain in SA to meet Saudi officials and start technical-level talks."

Itna bolo key farsh na phat parey
 
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Patwari cult following are twisting and spreading lies ....fact of the matter is, imported PM has been dispatched back EMPTY handed as of now.

This is dawn news:

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Discussion still going on. No agreement and official signatures yet. Where as Mir Shakil ur Rehman Jang network already posting fake news like securing / deal done etc.
 
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It’s sad to see our current economic situation.We will have to pay big price, and beg all over the world, considering complete economic destruction under Niazi regime.
Thank you S.Arabia for helping us out during these tough times. One can clearly see the difference. When Niazi went there considering his vast experience in begging, he only managed to get $1-2 Billion. When Speed Sharif went there he begged as well but secured good deal for Pakistan $8 Billion USD. :yahoo:Niazi didn’t even managed to secure a single deal of this scale during his illegal and selected regime. It’s an irony people still support such a failure and disappointment. :woot:
Level up your standards guys :pakistan:
8 billion? Oh bhai discussion chal rahi hy wo bhi sirf 3 billion par

Patwari cult following are twisting and spreading lies ....fact of the matter is, imported PM has been dispatched back EMPTY handed as of now.

This is dawn news:

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Discussion still going on. No agreement and official signatures yet. Where as Mir Shakil ur Rehman Jang network already posting fake news like securing / deal done etc.
This is just renegotiating the December deal
 
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Chicken 475/kg, 5kg cooling oil meezan in 2700 last month it was 2250. Go outside and do grocerry by your own then you will understand things not looking good our reserves also depleting

Things are too costly in Pakistan. We get chicken 200 Rs/Kg, 5 litre of fortune oil (refined oil) is below 1000 Rs and mutton is 650 Rs.
 
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It is a fake news
Quite a few people here say that it is fake. I think maybe there is an in principle agreement, but details like interest rates have not been worked out. At the very least, you see swift intent. No hesitation.

Saudi have a soft corner for the Sharif family. So it would be interesting to see if the loan terms are better than what Imran was able to negotiate :pop:
 
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Quite a few people here say that it is fake. I think maybe there is an in principle agreement, but details like interest rates have not been worked out. At the very least, you see swift intent. No hesitation.

Saudi have a soft corner for the Sharif family. So it would be interesting to see if the loan terms are better than what Imran was able to negotiate :pop:
That’s not the point- point is that the N league news is a mill for propaganda- publishing news based on allegations and secret sources without any verification
 
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That’s not the point- point is that the N league news is a mill for propaganda- publishing news based on allegations and secret sources without any verification
I don't know of any political party that does not engage in propaganda any where in the world :D

Imran Khan says expelling French ambassador would harm Pakistan​


“If we expel the French ambassador, the loss will be to Pakistan, it will make no difference to France,” Khan said in a televised speech.

He argued that severing ties with the European nation would result in falling exports, rising unemployment, closure of factories, rising inflation and an increase in poverty.

“So, will it damage us or France?’ asked the prime minister, who insisted that breaking ties with France would mean affecting relations with the entire European Union, the destination for around half of Pakistan’s total textile exports.
Very logical actually.
 
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This was expected. Every incoming govt in Pakistan has to resort to these measures, and this is yet another entrant into the revolving door.
 
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You're absolutely on point. PTI has an upper advantage in propaganda division where they spin everything in their favour. When we do it, it's holy task but when others do it, it's begging. People are dumb enough to go with the flow as if PTI wasn't taking any loans and had money producing trees.
Read to what I wrote properly. PMLn is taking the same loans and grants that PTI took. PMLn and members like you called it begging , now stay consistent with your rules.
For me it wasnt begging before and it isnt begging now - as states need loans and these loans are not aid, as it is paid back with interest.
 
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Going in more debt is nothing to celebrate. It's a vicious never ending cycle of poverty. It's the same corrupters in power who have swindled billions from similar loan facilities. Unfortunately Pakistanis never learn.
 
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