Skip to content Skip to Search
Skip navigation

Pakistan seeks $4.2bn from Saudi Arabia amid forex crunch

By Pramod Kumar
The Saudi deposit into Pakistan’s central bank was intended to strengthen the country's economy REUTERS/Akhtar Soomro
The Saudi deposit into Pakistan’s central bank was intended to strengthen the country's economy

Pakistan has sought $4.2 billion from Saudi Arabia after foreign exchange (forex) reserves reached a critically low level, ARY News reported, citing sources.

Finance minister Ishaq Dar requested Saudi Arabia to urgently provide a $4.2 billion package to Pakistan, sources added.

The government will buy oil and fertilisers worth $1.2 billion from Saudi Arabia on deferred payments, they said, adding that the request has been forwarded to Crown Prince Mohammad Bin Salman. 

Pakistan’s forex reserves are down to $6.7 billion for the first time since January 2019, which is not sufficient to meet the $8.8 billion principal and interest payments during the current fiscal year, the news report said.

Earlier this month, Saudi Arabia extended a $3 billion deposit it made to shore up Pakistan’s foreign reserves.

In August, Saudi Arabia planned to invest $1 billion in Pakistan after King Salman bin Abdulaziz gave a directive for the kingdom to support the Pakistani economy, Reuters reported, citing state TV.

Latest articles

Architecture, Building, Cityscape

Ajman sees 7% rise in hotel revenues amid tourism surge

The number of tourist arrivals in Ajman rose 9 percent year on year during the first quarter of 2024, leading to a 3 percent increase in hotel occupancy levels, according to the Ajman Department of Tourism Development. Revenue rose 7 percent year on year in the first quarter, as the average length of stay increased 5 percent, […]

Dubai The World Villas

Demand for beach plots sells 80% of The World villas in days

An ultra-luxe villa community planned for Dubai’s The World Islands is more than 80 percent sold only days after first being announced, thanks to the dearth of available beachfront plots in the city. The boutique developer Amali Properties, co-founded by siblings Ali and Amira Sajwani of Damac Properties, said last week that the community will […]

Path, Road, City BHB06R Wall Street Bull in Downtown Manhattan, NYC

Saudi stock trading slumps as interest jumps in US stocks

Saudi trading in US stocks trebled in the fourth quarter of 2023 compared with the previous year to SAR58.7 billion ($15.6 billion), as the kingdom’s interest in US equities revived following the Covid pandemic. Total trading in foreign and domestic markets remains historically low.  The transactions in the US market accounted for more than 97 […]

Investor Tim Draper told AGBI the US must 'swing back to freedom' to avoid losing innovation to countries such as the UAE

Tim Draper: UAE benefits from US crypto ‘overregulation’

Billionaire venture capitalist Tim Draper has criticised the US for its restrictive stance on cryptocurrency, claiming it is driving innovators towards more encouraging and friendlier markets such as the UAE. The Gulf state is actively developing regulatory frameworks to lure new forms of business, amid intense regional economic competition. Dubai and Abu Dhabi have set […]