Saudi Arabia to deposit $2 billion in SBP before IMF bailout, says Pakistan’s defence minister 

ISLAMABAD – Defense Minister Khawaja Asif said Saudi Arabia would be depositing funds worth $2 billion in the State Bank of Pakistan (SBP) in order to help the cash-strapped South Asia country to revive the IMF loan programme stalled since September last. 

The cash-strapped country is scrambling to complete the ninth review to secure $1.1 billion loan from the global lender but clouds of uncertainty overhang despite meeting multiple condition, including free floating of local currency and massive taxes on electricity. 

In line with the IMF conditions, Pakistan has already secured assurance of $2 billion from Saudi Arabia and $1 billion from the UAE.

“The IMF asked them (Saudi Arabia) to give that commitment to them. They (Saudi Arabia) have already given that, that means that they will pay [the funds to Pakistan],” Asif told Arab News in an interview on Thursday. 

He said the kingdom will prove the funds before the IMF programme. The global lender is not giving Pakistan any big amount, he said, adding: “It is just a program which we have to complete till 30th of June.” 

The IMF bailout program is set to expire on June 30, which has prompted the PDM government to explore other options to avert default. 

Asif said that Pakistan is receiving assistance from UAE, Saudi Arabia, China and some other sources, hoping that the country would manage to overcome the economic crisis. 

Responding to a question about the return of his Pakistan Muslim League-Nawaz (PML-N) supremo Nawaz Sharif, he said efforts were being made to get the former prime minister’s conviction in graft cases overturn before his return to Pakistan from London.