S Arabia to give $4b to Pakistan

MADINA - Saudi Arabia has agreed to give $4 billion to Pakistan and provide oil facility on one-year deferred payments. It has been learnt from reliable sources privy to the meeting held here the other day between King Abdullah bin Abdul Aziz and President Asif Ali Zardari. Advisor to Prime Minister on Finance Shaukat Tarin assisted the President during the meeting. 'A formal announcement in this regard will be made at the meeting of the 'Friends of Pakistan' to be held on November 17 at Abu Dhabi', said the source, adding, that Pakistan was aiming to accumulate $25 billion, which were being considered enough for bringing the economy back on track for the next 10 years. 'Moreover, King Abdullah during the one-on-one meeting with Zardari has also agreed to provide oil to Pakistan on one-year deferred payments, for which the agreement is expected to be signed soon', confided the source to The Nation, maintaining that President's visit had come at a time when Pakistan direly needed money to tide over its trade and budget deficits. Moreover, Pakistan had contemplated a short-term loan from the International Monetary Fund, but sources said this would be its last resort, given the IMF's stringent conditions. 'An oil facility from Saudi Arabia could help the country avoid the IMF loan, or at least put it on a better footing to negotiate for more favourable conditions'. Prime Minister Syed Yousuf Raza Gilani had requested the Saudi govt for the deferred oil payments during his visit to Saudi Arabia in July, mentioned the source. The sources said Zardari had held talks with King Abdullah during a two-day visit, and the two leaders had also discussed the recent Saudi initiative in bringing the Afghan government and Taliban leaders to the dialogue table. 'Economic, political and military cooperation between the two countries goes back several decades. Both the leaders are expected to sign a number of agreements on cooperation and investment in various sectors, while Zardari is also expected to ask Saudi businessmen to invest in Pakistan's various sectors', said the sources. Sources said Pakistan needed more than $5b within a month to meet its international obligations. 'The Friends of Pakistan' nations include the US, UK, France, Saudi Arabia, China, the UAE and several other countries, which are meeting in Abu Dhabi on November 17 to devise ways for stabilising Pakistan's economy', added the source.

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