Pak PM hits 'jackpot' in maiden visit, secures $8bn package from Saudi Arabia for ailing economy, says report

Edited By: Gandharv Walia
Islamabad Updated: May 01, 2022, 05:30 PM(IST)

Saudi Crown Prince Mohammed bin Salman meets Pakistan's Prime Minister Shehbaz Sharif upon his arrival in Jeddah, Saudi Arabia on Friday. Photograph:( Reuters )

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The PM and his official entourage have left Saudi Arabia. But Finance Minister Miftah Ismail has stayed back to finalise modalities of the financial package

 

Pakistan Prime Minister Shehbaz Sharif’s maiden visit to Saudi Arabia seems to have been successful as it has been helpful in securing a "sizeable package" of around $8 billion from the kingdom, a media report said.  

This comes as Pakistan has been reeling under financial crisis. It has also been under huge debt for sometime.   

To somehow stay afloat, different successive governments of the country have taken loans from many organisations and countries.   

Also Read: Pak PM Shehbaz Sharif meets OIC General secretary, discusses Kashmir issue

In the package, Saudi Arabia has agreed to double the oil financing facility, give additional money through deposits or Sukuks and roll over existing $4.2 billion facilities, said the report published in The News.  

It will help in reviving the ailing economy, but for how long?  

"However, technical details are being worked out and will take a couple of weeks to get all documents ready and signed," the report said, citing top official sources familiar with the development.  

The PM and his official entourage have left Saudi Arabia. But Finance Minister Miftah Ismail has stayed back to finalise modalities of the financial package.  

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Pakistan proposed the doubling of oil facility from $1.2 billion to $2.4 billion, which was agreed by Saudi Arabia. The rollover of existing deposits of $3 billion for an extended period up to June 2023 was also decided.   

"Pakistan and Saudi Arabia discussed an additional package of over $2 billion either through deposits or Sukuk and it is likely that even more money will be provided to Islamabad," the report said.   

The size of the total package may be determined after the additional money is finalised, it added.   

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(With inputs from agencies) 

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