Pakistan’s dependence on external financial support is deepening, with Saudi Arabia adding another $3 billion to Pakistan’s foreign exchange reserves.

The latest support takes Saudi cash deposits with Pakistan’s central bank to $8 billion, providing Islamabad with additional foreign-exchange liquidity and helping meet external financing pressures.

But the fresh Saudi support does not resolve Pakistan’s underlying financing challenges. Islamabad is also looking toward Washington, with Finance Minister Muhammad Aurangzeb confirming that Pakistan has formally requested a $10 billion exchange stabilization support facility from the United States.

Pakistan says the proposed US facility would not be a conventional loan or credit line, but rather a confidence signal for its currency and foreign-exchange stability. Islamabad hopes stronger external backing could improve investor confidence and eventually help the country return to international capital markets for longer-term borrowing.

Pakistan’s Financial Crisis Deepens: Saudi Adds $3 Billion As Islamabad Seeks $10 Billion From US

Pakistan's economic turmoil stoked by International Monetary Fund's loan trance and devaluation of Pakistani rupee has hit a new low. Pakistan's finance minister Mohammad Ishaq Dar admitted on Wednesday that the country is facing a massive shortage of US dollars amid "market abuses" of foreign currency within Pakistan. At the same time, Islamabad is seeking Saudi Arabia's financial assistance alongside the passage of $1.18bn in IMF loans.

The country recently struggled to pay the salaries to staff of some of its missions abroad, citing "fiscal crunch" and "shortage of dollars".&nbsp;

Up to four months of dues were left unpaid to Pakistan’s missions abroad, which were eventually released on December 14.&nbsp;

We don't have luxuries like England, US: Pakistan finance minister

Pakistan finance minister Mohammad Ishaq Dar said that central banks around the world including England, Bangladesh and India have intervened in the market and disbursed billions of dollars, a luxury which Pakistan does not have.&nbsp;

WATCH |&nbsp;<a href="https://www.wionews.com/videos/wion-business-news-pakistan-gdp-growth-to-slip-from-5-to-3-amid-floods-515286">WION Business News: Pakistan GDP growth to slip from 5% to 3% amid floods</a>

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"We have to make sure market-abuses must be checked,"&nbsp;he said. "I think that the multilaterals have to understand — we are neither the Bank of England nor the US Federal Reserves. We have foreign exchange constraints."

Pakistan's Current Account recorded a deficit of 2.3bn in Sep 2022, according to data published by State Bank of Pakistan.&nbsp;

'Positive vibes from Saudi' on financial help: Pakistan finance minister

Earlier on Tuesday, Pakistan finance minister reiterated that the country is seeking financial help from Saudi Arabia that will include doubling the current deferred oil payment facility given by Riyadh to $2.4 billion per year.

“I have discussed both things (financial help and oil facilities) with the Saudi finance minister, and there are positive vibes from there. They said they will support us,” Dar told Pakistani media.&nbsp;

Pakistan forex reserves at record low

Pakistan's foreign exchange reserves fell another $784 million to a precarious level of $6.715 billion as of December 2, 2022, data released by the central bank showed last Thursday. This is the lowest level of forex reserves since January 2019.

Pakistan entered a $6bn IMF credit line programme in 2019, which was increased to $7bn earlier this year. The IMF so far has not approved the release of $1.18bn in credit for 2022, further burdening the already crumbling economic health of Pakistan.

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Pakistan's economic turmoil stoked by International Monetary Fund's loan trance and devaluation of Pakistani rupee has hit a new low. Pakistan's finance minister Mohammad Ishaq Dar admitted on Wednesday that the country is facing a massive shortage of US dollars amid "market abuses" of foreign currency within Pakistan.

Pakistan's economic turmoil stoked by International Monetary Fund's loan trance and devaluation of Pakistani rupee has hit a new low. Pakistan's finance minister Mohammad Ishaq Dar admitted on Wednesday that the country is facing a massive shortage of US dollars amid "market abuses" of foreign currency within Pakistan. At the same time, Islamabad is seeking Saudi Arabia's financial assistance alongside the passage of $1.18bn in IMF loans. The country recently struggled to pay the salaries to staff of some of its missions abroad, citing "fiscal crunch" and "shortage of dollars". Up to four months of dues were left unpaid to Pakistan’s missions abroad, which were eventually released on December 14. We don't have luxuries like England, US: Pakistan finance minister Pakistan finance minister Mohammad Ishaq Dar said that central banks around the world including England, Bangladesh and India have intervened in the market and disbursed billions of dollars, a luxury which Pakistan does not have. WATCH | WION Business News: Pakistan GDP growth to slip from 5% to 3% amid floods × "We have to make sure market-abuses must be checked," he said. "I think that the multilaterals have to understand — we are neither the Bank of England nor the US Federal Reserves. We have foreign exchange constraints." Pakistan's Current Account recorded a deficit of 2.3bn in Sep 2022, according to data published by State Bank of Pakistan. 'Positive vibes from Saudi' on financial help: Pakistan finance minister Earlier on Tuesday, Pakistan finance minister reiterated that the country is seeking financial help from Saudi Arabia that will include doubling the current deferred oil payment facility given by Riyadh to $2.4 billion per year. “I have discussed both things (financial help and oil facilities) with the Saudi finance minister, and there are positive vibes from there. They said they will support us,” Dar told Pakistani media. Pakistan forex reserves at record low Pakistan's foreign exchange reserves fell another $784 million to a precarious level of $6.715 billion as of December 2, 2022, data released by the central bank showed last Thursday. This is the lowest level of forex reserves since January 2019. Pakistan entered a $6bn IMF credit line programme in 2019, which was increased to $7bn earlier this year. The IMF so far has not approved the release of $1.18bn in credit for 2022, further burdening the already crumbling economic health of Pakistan. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

With uncertain Saudi help and IMF loan, Pakistan's economic woes hit new low

To safeguard the country's dwindling reserves, Pakistan's central bank recently placed restrictions on access to foreign currency. This as per recent reports has resulted in the emergence of a black market for dollars.

Pakistan's foreign reserves have reportedly plunged to a four-year low of $6.7 billion.&nbsp;

As per Bloomberg, on the surface, this hasn't impacted the exchange rates, but once you delve deeper you come face to face with the reality.

The markets still have the current exchange rates on display but the money-changing firm reports that they have no dollars. However, if you're prepared to pay 10 per cent more than the going rate, you can get a greenback.&nbsp;

According to Asmat Ullah, CEO of Lahore-based money exchange company Ravi Exchange Company, "a third market has now developed", with the interbank foreign currency market and money-changing businesses being the first two.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/us-blacklists-pakistani-companies-for-supporting-islamabads-un-safeguarded-nuclear-activities-541399">US blacklists Pakistani companies for supporting Islamabad's 'un-safeguarded' nuclear activities</a>

As the chief executive of Karachi-based financial firm Alpha Beta Core Solutions, Khurram Schehzad, puts it whenever restrictive measures are implemented, "the grey economy picks up”.&nbsp;

With the alleged black market,&nbsp;Pakistan joins other developing nations like Nigeria, Argentina, and Lebanon that have experienced parallel exchange rates.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/senior-pak-journalist-arshad-sharifs-murder-was-a-planned-assassination-and-not-mistaken-identity-report-540972">Senior Pak journalist Arshad Sharif's murder was 'planned assassination' not 'mistaken identity' case: Report</a>

While a 10 per cent&nbsp;premium may not seem like much, the black market's formation could force the conventional authorities to relinquish control of the foreign exchange, which would hurt foreign investment and the business&nbsp;climate.&nbsp;Additionally, the dollar premium on the black market may indicate further rupee depreciation in the future.

The lack of foreign currency and the emergence of a parallel market only add to Pakistan's lengthy list of problems. The South Asian nation has already been plagued by disastrous floods, an economic crisis, and political unrest that has even descended into violence.

(With inputs from agencies)

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To safeguard the country's dwindling reserves, Pakistan's central bank recently placed restrictions on access to foreign currency. This as per recent reports has resulted in the emergence of a black market for dollars.

To safeguard the country's dwindling reserves, Pakistan's central bank recently placed restrictions on access to foreign currency. This as per recent reports has resulted in the emergence of a black market for dollars. Pakistan's foreign reserves have reportedly plunged to a four-year low of $6.7 billion. As per Bloomberg, on the surface, this hasn't impacted the exchange rates, but once you delve deeper you come face to face with the reality. The markets still have the current exchange rates on display but the money-changing firm reports that they have no dollars. However, if you're prepared to pay 10 per cent more than the going rate, you can get a greenback. According to Asmat Ullah, CEO of Lahore-based money exchange company Ravi Exchange Company, "a third market has now developed", with the interbank foreign currency market and money-changing businesses being the first two. Also read | US blacklists Pakistani companies for supporting Islamabad's 'un-safeguarded' nuclear activities As the chief executive of Karachi-based financial firm Alpha Beta Core Solutions, Khurram Schehzad, puts it whenever restrictive measures are implemented, "the grey economy picks up”. With the alleged black market, Pakistan joins other developing nations like Nigeria, Argentina, and Lebanon that have experienced parallel exchange rates. Also read | Senior Pak journalist Arshad Sharif's murder was 'planned assassination' not 'mistaken identity' case: Report While a 10 per cent premium may not seem like much, the black market's formation could force the conventional authorities to relinquish control of the foreign exchange, which would hurt foreign investment and the business climate. Additionally, the dollar premium on the black market may indicate further rupee depreciation in the future. The lack of foreign currency and the emergence of a parallel market only add to Pakistan's lengthy list of problems. The South Asian nation has already been plagued by disastrous floods, an economic crisis, and political unrest that has even descended into violence. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

As Pakistan's foreign exchange reserves dwindle a dollar black market emerges: Report