Saudi Arabia has approved funding worth $2 billion, which is expected to give a much-needed boost to Pakistan’s economy.
The recent $2 billion funding approval from Saudi Arabia coincides with significant progress in securing $3 billion in financing from friendly nations. The finance ministry sources have confirmed that Pakistan is permitted to obtain loans worth $2 billion from Saudi Arabia.
Furthermore, China has renewed its $2 billion deposit with the same terms, which was scheduled to be paid in March. However, the payment has been deferred for a year as Pakistan’s foreign exchange reserves remain stable.
Pakistan is reportedly seeking funding from Saudi Arabia and the United Arab Emirates (UAE) as a prerequisite for obtaining a loan tranche from the International Monetary Fund (IMF). Additionally, the IMF is pressuring Pakistan to reduce its petroleum imports and achieve the Rs. 850 billion target collection goal for the petroleum development levy.
Furthermore, the country is under pressure to meet this fiscal year’s tax collection target.