Ishaq Dar: Pakistan facing cash crunch got $2 billion from Saudi Arabia: Finance Minister Dar | World News – Times of India

Islamabad: Pakistan has received deposits of $2 billion from Saudi Arab, Finance Minister Ishaq Dar said on Tuesday ahead of an important meeting of International Monetary Fund To support the debt for the cash-strapped country.
last month, Government of Pakistan And the International Monetary Fund (IMF) reached a long-awaited staff-level agreement to infuse a $3 billion Standby Arrangement (SBA) into the ailing economy after months of protracted negotiations that pushed the country to the brink of default.
The IMF’s executive board is scheduled to meet on July 12 to review the SBA for Pakistan.
“State Bank of Pakistan (SBP) has received deposits worth $2 billion from the Kingdom of Saudi Arabia. This inflow has led to an increase in the foreign exchange reserves held by SBP and will accordingly be reflected in the foreign exchange reserves for the week ending July 14, 2023,” Dar said in a statement on Twitter.
Prime Minister Shehbaz Sharif also expressed his deep gratitude to “the leadership and brotherly people of the Kingdom of Saudi Arabia” for the deposit and thanked Crown Prince Mohammed bin Salman for ensuring this financial aid to Pakistan.
“This deposit will strengthen Pakistan’s foreign exchange reserves. This reflects the growing confidence of our fraternal countries and the international community in the economic transformation of Pakistan. We are determined to make all necessary efforts to improve the economy of Pakistan,” the Prime Minister said.
He also lauded Dar and Army Chief General Asim Munir for their “valuable efforts” for the betterment of the economy.
Riyadh had already pledged the money but waited for the IMF deal to be announced before depositing it. Similarly, the UAE’s pledge of support helped Pakistan convince the IMF that it had enough support to meet its conditions for improving the balance of payments.
The cash-strapped country lost over $4 billion in illegal remittances by migrants in the current financial year, which the government sought to secure as a bailout from the IMF, according to data released by the SBP on Monday. Much more than the amount fought for.
The country’s foreign exchange reserves saw an improvement for the second consecutive week on Friday, when it reached $4.4 billion, The Express Tribune newspaper reported.
Pakistan’s economy has been in a state of rapid decline for the past several years, putting untold pressure on the poor population in the form of rampant inflation, which has made survival almost impossible for a large number of people.