19/11/2018 08:02 AST

Pakistan is likely to receive the first tranche of $1 billion under the balance of payments support from Saudi Arabia within the next couple of days, boosting its plummeting foreign currency reserves.

The money would hopefully reach the State Bank of Pakistan (SBP) by Monday, Finance Minister Asad Umar said adding: “My Saudi counterpart has given me an assurance in this regard.”

The second and third tranche will be received over the next two months. Last month Saudi Arabia agreed to provide a $6 billion package to Pakistan to support its ailing economy. The package included $3 billion balance of payments support and another $3 billion in deferred payments on oil import.

Umar said the facility of deferred payment on oil import would mature by next month. However, he said that the immediate balance of payments crisis has been overcome with the help of bilateral assistance from Saudi Arabia and China.

“This will be an unprecedented help from China,” the minister said, adding that he had committed not to disclose details before it was finalised. “I will not divulge the details at this moment.”

He claimed that the only reason of going to the International Monetary Fund (IMF) was to accelerate the pace of economic growth and not to seek loan to fill any gap. He explained that he was not negotiating terms of a loan but of a broader economic reforms package. The available IMF funding quota for Pakistan is approximately $6-6.5 billion.

The government has taken several steps including reduction in expenditures to bring drastic cut in the current account deficit. “We will reduce the current account deficit to $12 billion by the end of June 2019, almost $7 billion reduction,” the minister declared, explaining that this was the government target for the first year.

He said the IMF package would play a small part in filling the balance of payments gap directly though it would pave the way for getting loans from multilateral donors and commercial creditors.


The Gulf Today

Ticker Price Volume
QNBK 196.99 124,786
APPC 53.30 133,976
SABIC 119.80 1,240,718
SAICO 11.92 520,367
STC 84.50 76,808
JARIR 154.40 89,382
ALINMA 22.04 8,511,404
Index Closing Change
NIKKEI 225 21,678.68 177.06 (0.82%)
DAX 10,788.09 -22.89 (-0.21%)
S&P 500 2,633.08 -62.87 (-2.33%)
China's factory gate inflation eases

10/12/2018

China's factory inflation slowed in November, a sign demand remains weak amid Beijing's ongoing trade war with the United States, while consumer inflation also flagged, official data showed on Sunday

Times of Oman

Global cement demand to grow 1.5 per cent next year

10/12/2018

Global demand for cement is seen growing by 1.5 per cent next year, the World Cement Association said, as economic risks and trade tensions weigh on the construction industry in many countries. The d

The Gulf Today

China’s trade surplus with US hits $35.6b

09/12/2018

China’s trade surplus with the United States ballooned to a record $35.6 billion in November, official data showed Saturday, as exports across the Pacific remained strong despite a raft of US tariffs

The Gulf Today

Stocks retreat as trade truce doubts return

05/12/2018

Deflating hopes of a swift resolution to the Sino-US trade war knocked world stocks off a three-week high on Tuesday, while recession warning lights in US bond markets weighed on the dollar.

The Gulf Today

Amazon briefly edges out Apple for most valuable company

04/12/2018

Amazon.com briefly became the most valuable company on Wall Street in intraday trade on Monday, days after Microsoft Corp. dethroned long-time leader Apple Inc.

Amazon rose by 4.7 percent a

Arab News