Pakistan Receives Another $1 Billion From Saudi Support Package
(Bloomberg) -- In another boost to the nation's dwindling dollar reserves, Pakistan on Friday received $1 billion from Saudi Arabia.
South Asia's second-largest economy is expecting its third and final $1 billion tranche from Riyadh next month to help ease Pakistan's financial crunch, Abid Qamar, a spokesman for the State Bank of Pakistan, told Bloomberg by phone.
Islamabad is looking to bridge a gap of at least $12 billion caused by its latest balance-of-payments crisis and is currently negotiating its 13th bailout since the late 1980s with the International Monetary Fund. Prime Minister Imran Khan has been loath to undertake reforms proposed by the IMF and since his election victory in July the former cricket star has shuttled between China, Saudi Arabia and the UAE in an effort to secure bilateral funding from those allied nations.
Pakistan said in October that Saudi Arabia would deposit $3 billion directly and provide another one-year deferred payment facility of up to $3 billion for oil imports. The announcement came after Khan attended the Future Investment Initiative in Riyadh. He was one of the few prominent foreign dignitaries present after it emerged that Jamal Khashoggi, a Saudi critic, was killed inside the kingdom's consulate in Istanbul.
Friday's inflow will bolster Pakistan's foreign exchange reserves, which fell to $7.3 billion in the week ended Dec. 7 -- the lowest in more than four and a half years.
To contact the reporter on this story: Ismail Dilawar in Karachi at mdilawar@bloomberg.net
To contact the editors responsible for this story: Chris Kay at ckay5@bloomberg.net, Khalid Qayum
©2018 Bloomberg L.P.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
