Pak banks on Saudi Arabia to avoid default

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Pak banks on Saudi Arabia to avoid default

In what appears to be an alternative to the International Monetary Fund (IMF), Pakistan Finance Minister Ishaq Dar expressed hope to receive a $3 billion second bailout from Saudi Arabia within days, vowing to raise money through sale of assets to beef up the critically-low foreign exchange reserves.
 

Islamabad: In what appears to be an alternative to the International Monetary Fund (IMF), Pakistan Finance Minister Ishaq Dar expressed hope to receive a $3 billion second bailout from Saudi Arabia within days, vowing to raise money through sale of assets to beef up the critically-low foreign exchange reserves.

“In matters of days, Saudi Arabia will beef up reserves,” said Dar, while responding to a question whether there was any
concrete commitment from any foreign nation to avoid the crisis.

Latern, he told The Express Tribune that Pakistan would receive $3 billion from the kingdom.

Twice in the past three months, Dar had said that Saudi Arabia would give $3 billion cash — the second bailout in the past one year. It is stated that the matter is now pending before the Saudi King for his final consent.

Due to the gravity of the situation, the civil-military leadership has discussed the economic situation more than twice in the past one week, including at the highest level — the NSC.

“The National Security Committee was satisfied and there is nothing to worry about,” The Express Tribune quoted the Minister as saying while responding to a question that the NSC’s handout was vague on the IMF question and it talked more about long-term plans.

The Finance Minister did not say categorically that the NSC backed the plan to go to the IMF, but stressed that there was consensus that everyone would work together to come out of the present crisis.

Dar said that the rollovers of the loans “is not an unusual thing”, as all the nations opt for borrowing new money to pay old liabilities or they opt for rollover.

“We are opting for rolling over deposits,” he said, adding that China would reimburse $1.2 billion shortly but did not say whether Beijing would also give fresh loans, The Express Tribune reported.

By June 30, the foreign exchange reserves position would be “exceptionally good compared to where Pakistan is standing today”,
Dar claimed.


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