Pakistan on the verge of poverty! Saudi Arabia extended its hand, made 8 big demands for 5 billion dollar deposit and oil.

Pakistan Saudi Arabia Financial Aid: Pakistan is once again going through the worst economic phase in its history. The Shehbaz Sharif government, burdened with shortage of foreign exchange reserves and increasing foreign debt, has extended a helping hand to its old friend Saudi Arabia. According to sources, Pakistan has submitted a proposal of 8 major requests to Saudi Arabia, aimed at providing immediate support to the country’s crumbling economy.

Demand to convert deposits into long term loans

Pakistan’s biggest demand is that the $5 billion deposits kept by Saudi Arabia in the State Bank of Pakistan, which are currently short-term, should be converted into a 10-year long-term facility. The government hopes that this will reduce the pressure on foreign exchange reserves and will help the country avoid the trap of expensive foreign debts.

Big relief expected on oil and remittances

To deal with the economic crisis, Pakistan supplied oil through ‘deferred payment’ It has also been proposed to increase the facility from $1.2 billion to $5 billion. Besides, a request has also been made to increase its repayment period from one year to three years. Apart from this, Pakistan has also sought securitization of remittances sent by Overseas Pakistanis up to $10 billion and cooperation in other areas.

Exemption in investment and bank guarantees

The Shehbaz government has also urged Saudi Arabia to ease bank guarantee conditions for Pakistan-related import transactions and explore new investment opportunities in Pakistan through the Saudi Arabian Sovereign Wealth Fund (PIF). However, there has been no official response from Riyadh on these proposals yet.

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Struggle is also going on with IMF

Along with seeking help from Saudi Arabia, Pakistan is also in touch with the International Monetary Fund (IMF). It is in talks to complete the third review of its $7 billion Extended Fund Facility program to provide additional financial stability. This step has been taken at a time when Pakistan’s economic challenges have increased due to regional tensions.