ISLAMABAD: Saudi Arabia has offered Pakistan $3 billion to help stave off a balance of payments crisis, the Pakistani foreign office said on Tuesday.
Pakistan said Saudi Arabia will place a deposit of $3 billion for one year. The finance ministers of both countries signed a memorandum of understanding to this effect during the Pakistani Prime Minister Imran Khan’s ongoing visit to the Kingdom.
The Kingdom has also offered a one-year deferred payment facility of up to $3 billion for the import of oil.
Pakistan faces a severe balance of payments crisis, with foreign exchange reserves falling to just over $14.6 billion, as of Oct. 12, according to the State Bank of Pakistan. The Pakistani rupee has also lost more than 20 percent of its value since the beginning of this year.
Pakistan’s balance of payments crisis is rooted in the country’s trade imbalance; the country’s oil and energy imports make up nearly a fifth of the import bill contributing to this imbalance. A deferred payment facility like the one offered by the Kingdom should help ease the pressure on the Pakistani economy in the short term.
Pakistani Prime Minister Imran Khan, along with his foreign, finance, and information ministers, is on a two-day visit to Saudi Arabia to participate in the Future Investment Initiative conference, also known as “Davos in the desert.”
Earlier, speaking at the conference in Riyadh, Khan invited attendees to invest in the country and reap benefits.
During the visit, Khan also met with King Salman and Crown Prince Muhammed bin Salman.
The Saudi Government has assured the Pakistani leadership of Saudi Arabia’s commitment to invest in a petroleum refinery in Pakistan, and explore other investment opportunities in the mining sector as well.
Furthermore, the crown prince has agreed to reduce the visa fee for Pakistani workers coming to the Kingdom, in an effort to enhance the Pakistani workforce in the Kingdom.
Saudi Arabia offers Pakistan $3bn to ease crisis
Saudi Arabia offers Pakistan $3bn to ease crisis
- Pledges deferred oil payments of up to $3 billion
- Pakistan currently facing severe balance of payments crisis, with foreign exchange reserves falling to just over $14.6 billion
Pakistan, Indonesia sign MoUs to expand cooperation as Islamabad seeks to ease trade imbalance
- Pakistan offers to send doctors and medical experts to support Indonesia’s expanding health needs
- Indonesian president highlights close foreign policy coordination with Pakistan, including on Gaza
ISLAMABAD: Pakistan and Indonesia signed seven memoranda of understanding on Tuesday to deepen cooperation in trade, education and health, with Prime Minister Shehbaz Sharif saying Islamabad aimed to narrow a $4.5 billion bilateral trade imbalance heavily tilted in Jakarta’s favor.
The agreements were concluded during Indonesian President Prabowo Subianto’s two-day visit to Pakistan, his first trip to the country since taking office and the first by an Indonesian head of state in seven years.
Subianto, who arrived on Monday, held detailed talks with Sharif before the signing ceremony.
“Our discussion has been extremely productive,” Sharif said at a joint media appearance. “More than 90 percent of our current imports from Indonesia are palm oil. We have discussed how to take corrective measures to balance this through Pakistan’s agri-exports, IT-led initiatives and other areas.”
Sharif earlier noted Pakistan’s bilateral trade with Indonesia stood at around $4.5 billion, with the imbalance overwhelmingly in Jakarta’s favor.
Subianto thanked Pakistan for what he called an exceptionally warm welcome, noting his aircraft had been escorted by Pakistan Air Force JF-17 fighter jets.
He said the meeting had produced agreements across several fields, including trade, agriculture, education and science and technology.
The Indonesian president also welcomed Pakistan’s offer to help his country address critical shortages of medical professionals.
“Indonesia has vast needs for doctors, dentists and medical experts, and Pakistan’s support in this regard is strategic and critical,” he said.
Sharif noted Pakistan would be ready to send doctors, dentists and medical professors to assist Indonesia’s plans to expand its medical colleges and universities.
He added that Islamabad would “work closely and diligently” with Jakarta to achieve the targets set during the visit.
Subianto said both countries were also coordinating closely on foreign policy, particularly on developments in Gaza, and reaffirmed Indonesia’s support for a two-state solution.
He invited Sharif to visit Jakarta to deepen cooperation under the new agreements.
Pakistan and Indonesia marked the 75th anniversary of diplomatic ties this year, with both leaders saying the visit would help lift relations to what Sharif called “a much higher level” in trade, development and people-to-people links.
