Saudi Arabia is finalizing the extension of the kingdom’s $3 billion deposit to Pakistan, Saudi finance minister Mohammed al-Jadaan told Reuters.
“We are currently finalizing the extension of the $3 billion deposit to Pakistan,” he said on the sidelines of the World Economic Forum in Davos.
Last year, Saudi Arabia poured $3 billion into Pakistan’s central bank to support its foreign reserves.
Jadaan did not offer 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 the term “or through other options”.
Pakistan is in dire need of external finances, plagued by high inflation, reserves that have fallen 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 revival of an International Monetary Fund program has increased volatility in the economy and markets amid a 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 seventh review in Doha.
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