$6 Billion Saudi Package For Pakistan
$6 Billion Saudi Package For Pakistan: Prime Minister Imran Khan’s frantic efforts to manage the balance of payment crisis finally cut ice with the Saudi government on Tuesday which committed $3 billion to Pakistan as balance of payment support for one year and supply of $3 billion worth of oil on deferred payment for three years. The package totals $12 billion.
“It was also agreed that a one-year deferred payment facility for import of oil, up to USD 3 billion, will be provided by Saudi Arabia. This arrangement will be in place for three years, which will be reviewed thereafter,” said a statement issued by the Prime Minister’s Office. The statement said the Saudi leadership had also confirmed its interest in the oil refinery project in Pakistan.
The prime minister was accompanied by Minister for Foreign Affairs Makhdoom Shah Mehmood Qureshi, Minister for Finance Asad Umar, Minister for Information Chaudhry Fawad Hussain, Adviser to the Prime Minister on Commerce Abdul Razaq Dawood and Chairman Board of Investment Haroon Sharif.
Apart from attending the conference, Imran also met with King Salman bin Abdul Aziz and Saudi Crown Prince Mohammad bin Salman to discuss matters of mutual interest.
Crown Prince Muhammad bin Salman (MBS) agreed to the prime minister’s suggestion to reduce visa fee for Pakistani workers, which is a significant step towards enhancing the country’s workforce in Saudi Arabia as well as facilitating travel of people from both the countries.
“Far-reaching decisions on bilateral economic and financial cooperation were also agreed during the meetings with Saudi leadership,” the statement said.
A memorandum of understanding (MoU) was signed between Finance Minister Asad Umar and Saudi Finance Minister Muhammad Abdullah Al-Jadaan under which Saudi Arabia would place a deposit of $3 billion for a period of one year as balance of payment support.
The earlier visit of Saudi delegation had evaluated the possibility of investing in a petroleum refinery in Pakistan. Saudi Arabia confirmed its interest in this project, and an MoU will be signed after obtaining the federal cabinet’s approval.
Saudi Arabia also expressed interest in development of mineral resources in Pakistan. For this purpose, the federal government and Balochistan government will consult, following which a delegation of the Kingdom will be invited to visit Pakistan.
After the inauguration of the FII conference, a Pakistan-specific session was organized in which Prime Minister Imran Khan underlined the country’s priorities towards optimising the economy and attracting foreign investment. Stressing the focus of his government on human resource development, the prime minister highlighted the potential of Pakistani youth and identified lucrative investment opportunities in the tourism sector, minerals, coal and gas exploration and information technology. The prime minister also took several questions from the audience comprising hundreds of entrepreneurs.
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