Saudi Arabia ready to invest more in Pakistan amid currency crisis

admin 10 January, 2023
Updated 2023/01/10 at 6:55 AM
3 Min Read
Screenshot 2196
Screenshot 2196

Saudi Crown Prince Mohammad Bin Salman instructs studying investment increase to reach $10b, deposits to $5b

Mickey Arthur, who will likely travel in Pakistan in the coming weeks, is on track to take over as the men’s team’s new head coach.

The South African, who is the head of cricket for the English county team Derbyshire, will land in Pakistan as soon as his exit strategy has been decided upon.

In the past, Arthur oversaw the Pakistani team for three years after assuming leadership in 2016.

It should be mentioned that the contracts for both bowling coach Shaun Tait and head coach Saqlain Mushtaq will end on February 9, 2023.

The $3 billion deposit in the State Bank of Pakistan (SBP) that was due to mature on December 5 was extended by the Saudi fund’s term last month.

In order to increase its foreign exchange reserves, the SBP and the SFD entered into an agreement in November 2022 for the SBP to receive $3 billion, which will be deposited in the central bank’s account.

The crown prince reportedly gave orders to consider raising the deposit’s earlier extension date of December 2, 2022, to a maximum of $5 billion, according to the Saudi state TV.

The Pakistani Prime Minister Muhammad Shehbaz Sharif and HRH the Crown Prince had previously communicated about this, the SPA continued.

The declaration was made a day after the crown prince met with Chief of Army Staff General Asim Munir during his first official visit to the nation from abroad.

Due to declining foreign exchange reserves, which have fallen below $4.5 billion, or three weeks’ worth of imports, Pakistan is currently experiencing a currency crisis.

Islamabad, on the other hand, is working feverishly to restart the International Monetary Fund’s (IMF) loan programme, which has been stagnant for months.

On the eve of the donors’ summit on Monday, a Pakistani delegation met with IMF representatives in Geneva and reaffirmed its commitment to seeing the programme through.

Following the meeting, a finance ministry statement said that finance minister Muhammad Ishaq Dar and IMF representatives “addressed challenges to regional economies in the face of climate change.”

It continued, “[The] finance minister reiterated the resolve to finish the Fund programme.”

Pakistan only has enough foreign exchange reserves to handle one month’s worth of imports because the lender has yet to sanction the transfer of the $1.1 billion that was originally scheduled to be distributed in November of last year.

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