ISLAMABAD :. In a major positive development , Saudi Arabia has announced to extend period of repayment of its $ 3 billion already deposited with the State Bank of Pakistan (SBP) to give a much- needed support to Pakistan’s currency in extremely difficult times . Pakistan’s currency is facing difficult time as a result of sharp decline in its Forex reserves and poor performance on economic front in recent years . Its rupee has fallen down to 200 to a dollar in these days putting huge pressure on the rupee. The decline in the rupee has hit hard all sectors of Pakistan’s economy. Pakistan needed financial support to help its currency pick strong position against US dollar .Pakistan was looking towards financial support to avoid more damage to its economy. Prime minister , Shahbaz Sharif, had flown to Saudi Arabia last month with a special request to the Saudi crown prince to extend repayment period of $ 3 billion already deposited with SBP by Riyadh to strengthen its Forex reserves .
The Saudi Finance minister made a formal announcement in his one of the sideline meetings at Davos, Switzerland . Saudi Finance minister on this occasion said ‘Pakistan was an important ally of Saudi Arabia and Riyadh will not let it go down financially or otherwise.
Saudi support is a great news for Pakistan . It will not only strengthen the rupee and stop its slide against US dollar, but will also give confidence to the Pakistani financial managers to negotiate with the International Monetary Fund (IMF)
to secure a tranche of one billion under EFF programme.
