KARACHI: Pakistan’s currency market bounced back on Wednesday to gain 1 rupee against the US dollar in intra-day trading after long-time ally Saudi Arabia announced a support package of $4.2 billion, traders and bankers said.
The Saudi money will help Pakistan to shore up its foreign reserves, which has been shrinking.
The rupee closed the previous session at 175.60 against the dollar. It has depreciated around 13.6 percent since May.
“Rupee appreciation is result of the Saudi funding announcement, widely seen as a positive surprise much needed to bolster the external account,” Saad Hashemy, executive director at BMA Capital, told Reuters.
Saudi Arabia announced on Tuesday $3 billion to support Pakistan’s foreign reserves, as well as extending financing of the oil derivatives trade for a total of $1.2 billion during the year, Pakistan’s Information Minister Fawad Chaudhry said.
Pakistan has been in talks with the International Monetary Fund (IMF) for the last two weeks to secure a $1 billion tranche, but its sixth review remained inconclusive.
Pakistan’s Prime Minister Imran Khan thanked Saudi Arabia.
“The Kingdom of Saudi Arabia has always been there for Pakistan in our difficult times, including now when the world confronts rising commodity prices,” Imran Khan said in a tweet.
In 2018, Saudi Arabia gave $3 billion in foreign currency support and further loan worth up to $3 billion in deferred payments for oil imports.
Pakistan’s rupee rebounds on $4.2 billion Saudi support package
https://arab.news/6yrtk
Pakistan’s rupee rebounds on $4.2 billion Saudi support package
- Country’s currency market bounced back on Wednesday to gain 1 rupee against the U.S. dollar in intra-day trading
- Pakistan has been in talks with IMF for the last two weeks to secure $1 billion tranche of $6 billion bailout loan
Pakistani president arrives in Iraq to deepen trade, energy cooperation
- Visit follows recent high-level contacts as Islamabad seeks to expand limited commercial ties with Baghdad
- Talks are expected to cover investment, manpower and facilitation of Pakistani pilgrims visiting holy sites in Iraq
ISLAMABAD: President Asif Ali Zardari arrived in Iraq on Saturday on an official visit aimed at expanding cooperation in trade, energy and investment, as Pakistan seeks to deepen ties with Baghdad after years of limited engagement.
Pakistan and Iraq established diplomatic relations in 1947 and have traditionally maintained cordial ties, though commercial links remain modest, with officials and business groups identifying scope for cooperation in construction services, pharmaceuticals, manpower and agricultural exports.
“President Asif Ali Zardari arrived in Baghdad on a four-day official visit to Iraq,” his office said in a post on X. “He was received by Culture Minister Dr. Ahmed Fakkak Al-Badrani. During the visit, meetings with senior Iraqi leadership are expected to advance cooperation and further strengthen Pakistan-Iraq relations.”
Zardari’s visit follows a series of recent high-level contacts between the two countries, reflecting efforts to broaden bilateral engagement beyond traditional diplomatic ties and explore collaboration across economic, political and people-to-people domains.
According to Pakistan’s foreign office, the president is expected to hold meetings with Iraq’s senior leadership to discuss cooperation in various areas such as trade and investment, energy, technology, education and manpower.
He is also expected to discuss regional and international issues with Iraqi officials.
Earlier this month, Pakistan’s Interior Minister Mohsin Naqvi met his Iraqi counterpart, Abdul Ameer Al-Shammari, on the sidelines of meetings in Brussels, where both sides agreed to enhance cooperation on security and facilitate travel for Pakistani Shia pilgrims to Najaf and Karbala.
The two officials discussed measures to ensure the smoother movement of these pilgrims and their compliance with visa regulations.
