Saudi Arabia is finalizing the extension of the kingdom’s $3 billion deposit in Pakistan, Saudi Finance Minister Mohammed al-Jadaan told Reuters.
“We are currently finalizing the $3 billion deposit extension in Pakistan,” he said on the sidelines of the World Economic Forum in Davos.
Last year, Saudi Arabia deposited $3 billion in Pakistan’s central bank to help support its foreign exchange reserves.
Jadaan did not give further details, but on May 1 the two countries said in a joint statement that they would discuss the possibility of supporting the deposit by extending its duration “or through other options”.
Pakistan is in desperate need of external finance, penalized by high inflation, reserves dwindling to less than two months of imports and a rapidly weakening currency.
Jadaan said Pakistan was an important ally and the kingdom would stand behind the South Asian nation.
Uncertainty over the relaunch of an International Monetary Fund program has heightened volatility in the economy and markets amid political crisis since a new government took over from ousted Prime Minister Imran Khan last month.
The IMF is likely to conclude ongoing talks on a 7th review in Doha.
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