ISLAMABAD: Saudi Arabia has discussed enhancing its $3bn deposits in Pakistan’s central bank “through term extension or otherwise,” according to a joint statement issued at the conclusion of Prime Minister Shehbaz Sharif’s three-day visit to the kingdom.
The Pakistani prime minister arrived in Saudi Arabia on Thursday on his first official foreign trip since assuming office on April 11. He met Saudi Crown Prince Mohammed bin Salman at the Al-Salam Palace in Jeddah late Friday.
Their talks, according to the joint statement, revolved around enhancing bilateral trade, investment and encouraging cooperation between the private sector in both countries, among other issues.
Saudi Arabia deposited $3 billion in Pakistan’s central bank to help support its foreign reserves last year. The South Asian nation’s financial situation has not improved since then, and it still requires external finances due to its widening current account deficit and declining foreign exchange reserves.
“The Kingdom of Saudi Arabia affirmed its continued support to Pakistan and its economy including the discussion of augmenting the three billion USD deposit with the central bank through term extension or otherwise,” read the joint statement, shared by the Prime Minister’s Office.
The statement said that Pakistan “greatly appreciates” the strong support of the Saudi government to Pakistan.
Finance minister Miftah Ismail announced on Saturday he was still in the kingdom for “technical-level talks” after Prime Minister Sharif’s departure from the kingdom.
Saudi Arabia also said the two sides would explore options to further enhance the financing of petroleum products and support structural reforms for Pakistan’s growth.
Pakistan and Saudi Arabia stressed on the importance of cooperation between the two countries while discussing the opportunities available under the kingdom’s economic transformation plan through its Vision 2030 program.
The kingdom’s pledge to support Pakistan comes at a crucial time for the South Asian nation as it grapples with a widening current account deficit, depleting foreign exchange reserves and soaring inflation.
The Pakistani prime minister also landed in Abu Dhabi on his way back home and was received by Crown Prince and Deputy Supreme Commander of United Arab Emirates Armed Forces Sheikh Mohamed bin Zayed Al Nahyan ahead of their meeting at the royal palace.