ISLAMABAD: Saudi Arabia’s Finance Minister Mohammed Al Jadaan said the kingdom would continue to support Pakistan’s finances as much as it can, as the country looks to shore up alliances with others struggling from inflation, Bloomberg reported on Thursday.
With political instability on the rise, Pakistan is beset with various economic problems. The South Asian country has to pay off mounting external debt while its reserves continue to dwindle. It’s currency, the rupee, has failed to register strong growth against the US dollar in recent weeks.
To make matters worse, in times of high inflation, devastating floods killed over 1,700, destroyed swathes of crops and damaged critical infrastructure in Pakistan this monsoon season. The country estimates losses over $30 billion from the floods.
“The Saudi government will ‘continue to support Pakistan as much as we can,’” Bloomberg quoted Al Jadaan as saying at a press conference in Riyadh.
Last week, Saudi Arabia extended the term of a $3 billion deposit it made to Pakistan's foreign reserves to help the country grapple with its economic crisis.
Earlier today, Thursday, Pakistan’s central bank governor confirmed Islamabad is in talks for a $3 billion loan from a “friendly country”.
“The Government is also in talks with a friendly country for the disbursement of a $3 billion loan and negotiations with multilateral agencies are progressing, for further financial support,” State Bank of Pakistan (SBP) Governor Jameel Ahmad said in a podcast.
