Saudi Arabia to provide $3bn to Pakistan as balance of payment support

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Saudi Arabia will provide Pakistan with a deposit of $3 billion for a period of one year as “balance of payment support”, a statement from Prime Minister Imran Khan’s office said Tuesday.

“It was agreed that Saudi Arabia will place a deposit of USD 3 Billion for a period of one year as balance of payment support,” the statement said.

“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.”

The development comes as Prime Minister Imran Khan visited Riyadh where the prime minister launched a charm offensive targeting potential investors as Pakistan seeks to secure funds amid a yawning balance of payment crisis.

Apart from attending the Future Investment Initiative (FII) conference, the Pakistani premier also met with King Salman bin Abdul Aziz and Saudi Crown Prince Mohammad bin Salman to discuss matters of mutual interest.

According to the statement, the visit by the Pakistan premier to the kingdom has resulted in significant understandings between the two countries.