Saudi Arabia vows to help Pakistan’s finances 'as much as it can'

[FOOLS_NIGHTMARE]

• Saudi finance minister says kingdom will help Pakistan’s finances.
• Reserves fall below $7bn for first time since Jan 2019.
• Earlier this month, Saudia Arabia extended term of $3bn deposit.

Saudi Arabia Finance Minister Mohammed Al Jadaan said the kingdom would help Pakistan’s finances as it looks to help shore up alliances with countries struggling due to soaring inflation, Bloomberg reported Thursday.

Addressing a press conference in Riyadh, Al Jadaan said the Saudi government will “continue to support Pakistan as much as we can.”

In order to bolster its relationships, the kingdom has taken several steps to provide financial support to Pakistan as the cash-strapped nation desperately seeks support from international partners.

Earlier this month, Saudia Arabia extended the term of a $3 billion deposit to boost foreign currency reserves and help Pakistan in overcoming the economic repercussions of the cataclysmic floods.

The finance minister also shared that Riyadh was also looking to do more investments in Egypt and is planning to start doing deals in Turkey.

“Our relationship with Turkey is improving greatly, and we hope to have investment opportunities,” he said.

“We have started investing aggressively in Egypt and we will continue to look at investment opportunities and that is more important than deposits. Deposits can be pulled but investments stay.”

It should be noted that Pakistan is in dire need of funds as the country’s foreign exchange reserves held by the central bank fell $784 million to $6.7 billion as of December 2.

The decline means the reserves have fallen further from November's barely one month of import cover, even as it battles decades of high inflation and scrambles to secure International Monetary Fund (IMF) funds.

The country’s foreign exchange reserves have fallen below the $7 billion level for the first time since January 2019. The current reserves stand at around $6.7 billion — almost equal to $6.6 billion on January 18, 2019.

Saudi Arabia vows to help Pakistan’s finances 'as much as it can'

Saudi finance minister says kingdom will help Pakistan’s finances.Reserves fall below $7bn for first time since Jan 2019.Earlier this month, Saudia Arabia extended term of $3bn deposit.

www.geo.tv

 

[maithil]

This settles it then.. They will probably announce a 10 billion package.. enough to last one year..

 

[epebble]

This settles it then.. They will probably announce a 10 billion package.. enough to last one year..

If they want to be helpful, they should give grants instead of deposits or loans. There is no sense in adding to stratospheric debts. But to prevent leakage and misuse, it should be in kind. Food, fuel and medicine mainly.

 

[maithil]

If they want to be helpful, they should give grants instead of deposits or loans. There is no sense in adding to stratospheric debts. But to prevent leakage and misuse, it should be in kind. Food, fuel and medicine mainly.

People tend to forget " grants".. With loans, they remember... Helps lender have a leverage..

 

[epebble]

People tend to forget " grants".. With loans, they remember... Helps lender have a leverage..

"Grants" can come with conditions too. for $10 billion grant, they should get the right to appoint their choice of finance minister.

 

[HAIDER]

A hole in the bucket made by corrupts and can t be repaired ... need 4.2 billion to open import LCs.

Corrupt to the core top brass ...

 

[zn426]

If saudi wants to help they can do two things to be impactful:
1. Lend at low interest cost to small businesses that can export products and solve the problem of CAD.
2. Buy out the power plants, including the Chinese ones, and sell fuel at cost. Huge fuel cost savings would enable Pakistani businesses to compete regionally on exports.

Do that and Pakistan will be in good shape.

 

[ARMalik]

If the Saudis provide any financial assistance to Pakistan than they will be supporting Corruption and Human rights violations in Pakistan. Saudi support should be linked to immense CLEAN-UP of corruption in Pakistan Armed forces and the Military imposed civilian government.

 

[villageidiot]

If the Saudis provide any financial assistance to Pakistan than they will be supporting Corruption and Human rights violations in Pakistan. Saudi support should be linked to immense CLEAN-UP of corruption in Pakistan Armed forces and the Military imposed civilian government.

why tho? They benefit from having weak, corrupt people at the helm just like everyone else except poor Pakistanis.

 

[langda khan]

Raising capital is always good news for any organisation.

Warmest congratulations to all of Pakistan.

 

[COOKie LOOkie....]

I hope Saudi doesn’t give Pakistan a single dime. They wont learn. Pakistan needs to comeout of this situation itself. If it defaults so be it.
The country needs to learn how to get on their feet by their own no more bailout, no more handout.

 

[MultaniGuy]

Yes, we are grateful to Saudi Arabia.

Long live Saudi-Pak friendship.

 

[Riz]

First let us know where did u spent those 8 billion dollars which u taken from saudia in may 2022

https://twitter.com/x/status/1520639353797578752

 

[Krptonite]

If saudi wants to help they can do two things to be impactful:
1. Lend at low interest cost to small businesses that can export products and solve the problem of CAD.
2. Buy out the power plants, including the Chinese ones, and sell fuel at cost. Huge fuel cost savings would enable Pakistani businesses to compete regionally on exports.

Do that and Pakistan will be in good shape.

Its basic economics bruv, you would need your return on investment to be appealing against other global investments otherwise the scope of the works you've laid out wouldn't interest any investor much less the Saudis.

Buying out and giving low interest loans would require significant resources from Saudi Arabias kitty, unless the returns are appealing no investor would commit to such largese.

 

[epebble]

I hope Saudi doesn’t give Pakistan a single dime. They wont learn. Pakistan needs to comeout of this situation itself. If it defaults so be it.
The country needs to learn how to get on their feet by their own no more bailout, no more handout.

Ordinary Pakistanis will be having shortages of food and medicine. What will your "comeout of this situation" consist of? Demanding change is important; but that should go along with some compassion and help to ordinary people. They should give help and demand that some things be run to their liking. They can ask, knock off your military budget by 50% if you want help.