Arab Press

بالشعب و للشعب
Friday, Jun 20, 2025

Pakistan, Saudi Arabia to discuss extending term of $3bn deposit

Pakistan, Saudi Arabia to discuss extending term of $3bn deposit

Saudi Arabia will discuss the option of extending the terms of its $3bn deposit in Pakistan’s central bank, according to a joint statement.

Saudi Arabia will discuss the option of extending the terms of its $3bn deposit in Pakistan’s central bank to help Islamabad’s faltering economy, according to a joint statement.

In recent years, Saudi Arabia has provided Pakistan with $4.2bn of support in the form of a $3bn loan deposited with the central bank as well as $1.2bn in deferred oil payments to boost its foreign reserves. The cash-strapped nation’s foreign exchange reserves plunged below $11bn last month.

“The Kingdom of Saudi Arabia affirmed its continuous support to Pakistan and its economy, including the discussion of augmenting the $3bn deposit with the central bank through term extension or otherwise,” a joint statement issued on Sunday said.

The latest sign of support follows a visit to Saudi Arabia by Pakistan’s new Prime Minister Shehbaz Sharif, who has inherited a crippling national debt, galloping inflation and a weak rupee.

Saudia Arabia also pledged “to further enhance the financing of petroleum products” at a time when the South Asian country is suffering from frequent power cuts.

The Gulf nation has long been a regular source of financial relief for successive governments.

“Pakistan deeply values the Kingdom’s continued support to Pakistan,” tweeted Sharif, adding that the joint statement “ushers in a new era of close cooperation” between “our two brotherly countries”.

‘Technical-level talks’


The statement comes after recent talks between Pakistan and the International Monetary Fund (IMF) over the release of funds under an existing $6bn aid programme that had stalled due to concerns about the pace of reforms.

“The little financial help we can get from any country would help us given the condition of our economy,” Kaiser Bengali, a veteran economist, told AFP.

“But for how long will we run our economy on loans? This policy is not going to work even for the next five years.”

Pakistani Finance Minister Miftah Ismail, who had stayed on in Saudi Arabia for “technical-level talks”, was due to land back in Pakistan on Sunday evening.

Pakistan’s Prime Minister Sharif also met Organization of Islamic Cooperation Secretary-General Hissein Ibrahim Taha during his visit. A range of issues facing the Islamic world was on the agenda, including the situations in Palestine, Afghanistan, and Indian-administered Kashmir.

Sharif also travelled to the United Arab Emirates, where he held talks with Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed Al Nahyan.

Sharif was elected Pakistan’s prime minister on April 11, succeeding Imran Khan, who was ousted in a parliament no-confidence vote.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Syria to Reconnect to Global Economy After 14 Years of Isolation
Saudi Arabia Faces Uncertainty Over Succession After Mohammed bin Salman
Israel Confirms Arming Gaza Clan to Counter Hamas Influence
Majority of French Voters View Macron's Presidency as a Failure
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
Iran Warns Europe Against Politicizing UN Nuclear Report
Businessman Mauled by Lion at Luxury Namibian Lodge
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
Head of Gaza Aid Group Resigns Amid Humanitarian Concerns
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
×