Time is not far when Pakistan would be offering loans to other countries: Imran Khan

WION Web Team Pakistan Oct 25, 2018, 01.20 PM(IST)

Imran Khan. Photograph:( AFP )

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'The time is not far when Pakistan would be offering loans to the other countries instead of taking, stay strong, May Allah help us all', he said.

After Saudi Arabia agreed to provide financial assistance to Pakistan on Tuesday, Prime Minister Imran Khan said that the package had eased pressure on Pak's depleting foreign exchange reserves.

He further added that soon Pakistan will become a country that would be offering loans to others instead of borrowing. 

"The time is not far when Pakistan would be offering loans to the other countries instead of taking, stay strong, May Allah help us all", he said.

Praising Saudi Arabia's assistance he said that the financial package from Saudi will strengthen Pakistan's bargaining position in case the government approached the International Monetary Fund (IMF) for a bailout.

He said even if the government was forced to seek IMF assistance, it would not need as much money as it would have needed in the absence of the Saudi assistance. 

Saudi Arabia's deal with Pakistan was announced on Tuesday after Imran Khan called on Saudi King Salman bin Abdulaziz. The country has assured Pakistan US $3 billion in foreign currency support for a year in addition to a loan worth up to US $3 billion in deferred payments. 

"We were facing really hard times. We were under high pressure to pay heavy debts. But thanks to Saudi Arab's extension of assistance, we are out of the pressure," Khan said.

He said people should not worry as the difficult time would pass and Pakistan will emerge as a much stronger and prosperous country in the coming years. 

He also hinted on taking financial assistance from two other "friendly countries".

Khan is set to visit Malaysia later this month and China on November 3.

Pakistan's Finance Minister Asad Umar recently said the country may need more than US $12 billion to plug its finances as the current-account deficit widens and foreign-currency reserves plummet. 

The Khan criticised the previous governments and held them responsible for the current economic crisis.

He said the country's debt was Rs 6,000 billion in 2008 which snowballed to Rs 30,000 billion in 2018.

Khan said the government was doing audit of the massive debt and threatened that the corrupt element would face merciless accountability.

 

 

(With inputs from agencies)