ISLAMABAD - Pakistan Tuesday took a big step forward to avert the International Monetary Fund programme as Saudi Arabia agreed to provide $3 billion for one year as balance of payment support and a further one-year deferred oil payments facility for up to $3 billion.
The foreign ministry here said Prime Minster Imran Khan’s visit to Saudi Arabia had resulted in ‘significant understandings’ between Pakistan and Saudi Arabia.
“Saudi Arabia will place a deposit of $3 billion for a period of one year as balance of payment support. It was also agreed that a one year deferred payment facility for import of oil, up to $3 billion, will be provided by Saudi Arabia. This arrangement will be in place for three years, which will be reviewed thereafter,” said the foreign ministry statement, citing the Prime Minister’s meetings with the Saudi Royals.
The foreign ministry said a Memorandum of Understanding in this regard was signed between Finance Minister Asad Umar and his Saudi counterpart Mohammed Abdullah Al-Jadaan.
Pakistan is making last ditch efforts to avert the IMF bailout as the Fund’s programme could result in a price hike – giving an opportunity to the opposition parties to criticise the government.
Prime Minister Imran had flown to Saudi Arabia on October 22 on the special invitation of King Salman Bin Abdel Aziz to participate in the “Future Investment Initiative” conference and to hold talks with the Saudi leaders.
After Saudi Arabia, Imran Khan will visit Malaysia and China. He will fly to Malaysia on October 28, and will leave for week-long visit to China on November 3.
In Saudi Arabia, the Prime Minister was accompanied by Minister for Foreign Affairs Shah Mehmood Qureshi, Finance Minister Asad Umer, Information Minister Chaudhry Fawad Hussain, Adviser to PM on Investment Abdul Razak Dawood and Chairman Board of Investment Haroon Sharif.
Officials told The Nation that Imran Khan was keeping the IMF as the last option and would try to acquire minimum loan from the Fund if ‘inevitable.’
The foreign ministry said the earlier visit of the Saudi delegation had evaluated the possibility of investing in a petroleum refinery in Pakistan. “Saudi Arabia confirmed its interest in this project, and a MoU will be signed after obtaining cabinet approval,” said the statement issued in Islamabad on Tuesday.
It added: “Saudi Arabia expressed interest in development of mineral resources in Pakistan. For this purpose, the federal government and the government of Balochistan will consult, following which a delegation of the Kingdom will be invited to visit Pakistan.”
The ministry said Prime Minister Imran had visited Saudi Arabia to participate in the FII Conference on October 22-23. During the visit, the PM had detailed bilateral discussions with King Salman bin Abdul Aziz and Crown Prince Mohammed Bin Salman.
“The Crown Prince agreed to the Prime Minister’s suggestion to reduce visa fee for Pakistani workers, which is a significant step towards enhancing Pakistan’s workforce in Saudi Arabia, as well as facilitating travel of people from both countries,” the statement said.
On October 23, after the inauguration of the FII Conference, a Pakistan-specific session was organised, in which the prime minister underlined Pakistan’s priorities towards optimising the economy and attracting foreign investment.
Stressing the focus of his government on human resource development, he highlighted the potential of Pakistan’s youth, identified lucrative investment opportunities in the tourism sector, minerals, coal and gas exploration, and Information Technology.
He mentioned the successes of Pakistan in the fight against terrorism, which has brought peace and stability to the country and elaborated the significance of China Pakistan Economic Corridor, including the investment opportunities in the Special Economic Zones.
Prime Minister Khan also took several questions from the audience comprising hundreds of business entrepreneurs.
MEETING WITH KING SALMAN
Prime Minister Imran Khan and Saudi King and Custodian of the Two Holy Mosques Salman bin Abdulaziz Tuesday discussed the bilateral issues, regional and international situation.
During a meeting in Riyadh, both leaders expressed their desire to further strengthen the bilateral cooperation. They also discussed issues of mutual interest, trade, investment and economic ties, PM office media wing’s press release issued in Islamabad said.
Issues of Pakistani workforce and labourers were also discussed and the Saudi King directed Saudi ministry concerned to immediately resolve those issues.
Saudi Minister for Finance Mohammed al-Jadaan, Minister of Commerce and Investment Dr Majed Al-Qasabi and Saudi Minister for Energy, Industry and Mineral Resources Engineer Khalid Al Falih also called on Prime Minister Imran Khan in Riyadh.
During the meeting, the prime minister highlighted the investment opportunities in energy and different sectors of Pakistan.
Saudi Development Fund Chairman Ahmad Al-Khateeb and head of Public Investment Fund Yasir Al-Rumayyan were also present during the meeting.
The prime minister informed the Saudi ministers about the functioning of one window operation in Pakistan for the enhancement of foreign and local investment and facilitation of the business community. A special cell to extend facilities to the business community had also been established, he added.
The Saudi ministers expressed their interest in the economy of Pakistan and discussed projects under the bilateral investment.
During the meeting, the progress on matters in the wake of Saudi delegation’s visit to Pakistan was also reviewed. The Saudi energy minister would soon visit Pakistan to give final shape to the agreed projects.
PM secures $6b support from KSA
