Saudi Arabia offers Pakistan $3 bln in support plus deferred oil payments

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Saudi Arabia has agreed to give Pakistan $3 billion in foreign currency support for a year and allow it to defer payments for oil imports to help stave off a current accounts crisis, Pakistan’s government said on Tuesday.

The agreement came between the two countries during a visit by Prime Minister Imran Khan to Riyadh where he met King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman.

The Pakistani Prime Minister also attended the second edition of the three-day Saudi Future Investment Initiative Forum which began on Tuesday in Riyadh.

“It was agreed Saudi Arabia will place a deposit of $3 billion for a period of one year as balance of payment support,” Pakistan’s foreign ministry said in a statement.

“It was also agreed that a one-year deferred payment facility for import of oil, up to $3 billion, will be provided by Saudi Arabia. This arrangement will be in place for three years, which will be reviewed thereafter.”

According to the Pakistan Ministry of Foreign Affairs, after the inauguration of the FII Conference, a Pakistan-specific session was organized, in which the Prime Minister Imran Khan underlined Pakistan’s priorities towards optimizing the economy and attracting foreign investment.

Stressing the focus of his government on human resource development, he highlighted the potential of Pakistan’s youth, identified lucrative investment opportunities in the tourism sector, minerals, coal and gas exploration, and Information Technology.

During the visit, the Prime Minister was accompanied by the Minister for Foreign Affairs, Makhdoom Shah Mehmood Qureshi, Minister for Finance, Asad Umar, Minister for Information, Fawad Ahmed, and Advisor to the Prime Minister on Commerce, Razaq Dawood.

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