Islamabad: During the visit of Prime Minister Shehbaz Sharif, Pakistan secured a “sizeable package” of around $8 billion from Saudi Arabia.
According to The News International report, the $8 billion package includes a doubling of the oil financing facility, additional money either through deposits or Sukuks, and rolling over of the existing $4.2 billion facilities.
The media outlet quoted the top official sources privy to the development saying, “However, technical details are being worked out and will take a couple of weeks to get all documents ready and signed.”
Shehbaz Sharif and his official entourage have left Saudi Arabia. Pakistan Finance Minister Miftah Ismail is still staying there to finalize the modalities of the increased financial package.
Taking to Twitter Ismail wrote, “Just said goodbye to Prime Minister Shehbaz Sharif and other colleagues at Jeddah Airport, who are on their way to Islamabad after a brief stopover in Abu Dhabi to meet Crown Prince Muhammad Bin Zayed. I remain in SA to meet Saudi officials and start technical-level talks.”
According to him, Pakistan’s proposal of doubling the oil facility from $1.2 billion to $2.4 billion was accepted by Saudi Arabia. He also agreed that the existing deposits of $3 billion would be rolled over for an extended period up to June 2023.
“Pakistan and Kingdom of Saudi Arabia discussed an additional package of over USD 2 billion either through deposits or Sukuk and it is likely that even more money will be provided to Islamabad,” the official sources said as per the reports. He further added that the size of the total package would be determined after additional money was finalized.
Saudi Arabia had provided $3 billion deposits to the State Bank of Pakistan in December 2021. The country also provided Pakistan with $100 million to procure oil after the Saudi oil facility was operationalized in March 2022.
When Imran Khan was in power, for one year Saudi Arabia provided Pakistan a package of $4.2 billion, including $3 billion deposits and a $1.2 billion oil facility.
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