Islamabad: There is news of relief for Pakistan going through bad economic conditions. The country’s Finance Minister Ishaq Dar said on Tuesday that Pakistan has received financial assistance of $ 2 billion from Saudi Arabia. This relief has come a day before the final approval for the much-needed $3 billion bailout package from the International Monetary Fund (IMF).
Finance Minister Ishaq Dar thanked
Pakistan’s Finance Minister Ishaq Dar said in a recorded video, “I thank Saudi Arabia on behalf of the prime minister and the army chief. The financial help provided by Saudi Arabia will help in increasing the depleting foreign exchange reserves of the central bank. Especially this help has come at a time when Pakistan’s foreign exchange reserves were left only for 1 month.
Saudi Arabia promised money to Pakistan in April but held off on depositing money in the State Bank of Pakistan until it was sure that the IMF bailout was imminent.
IMF board meeting on Wednesday on approval of the bailout
Pakistan received the final relief package of $3 billion from the IMF on the last day of June. However, it still needs approval from the IMF board, for which a meeting is to be held on Wednesday. Under the nine-month arrangement, Pakistan will receive an advance of about $1.1 billion and the IMF will disburse the rest.
Pakistan’s credit rating improved
Finance Minister Dar says that after the IMF ms agreement, apart from help from Saudi Arabia, more multilateral doors will open for Pakistan. He said that it is expected that by the end of this month, Pakistan’s foreign exchange reserves will reach $15 billion. The Fitch credit rating agency on Monday downgraded Pakistan’s rating from CCC- to CCC, and the bailout has also brought relief to the country’s investors. Sharif’s coalition government faces national elections later this year and will find it extremely challenging to impose strict fiscal discipline measures to satisfy the IMF.
