Saudi Arabia has deposited $2 billion into Pakistan’s central bank to boost the country’s foreign exchange reserves. This deposit will remain in the bank for at least a year and is not a loan. The infusion of funds comes ahead of a crucial meeting of the International Monetary Fund (IMF), where a new $3 billion loan to Pakistan is expected to be approved. Pakistan’s foreign exchange reserves dropped to $9.6 billion last week, which was barely enough to pay import bills for a month. With the Saudi deposit, the reserves have increased to $11.6 billion. The Finance Minister of Pakistan, Ishaq Dar, thanked the Saudi leadership on behalf of the government and people of Pakistan. He assured the nation that Pakistan’s economy will improve with the additional funds. Prime Minister Shehbaz Sharif expressed his gratitude to Saudi Arabia and said the deposit reflects the kingdom’s confidence in Pakistan’s economic turnaround. The IMF agreement provides much-needed relief to Pakistan’s struggling economy, which has faced challenges such as devastating floods and international commodity price spikes. The original bailout deal was signed in 2019 and was set to expire on June 30 before the new agreement was announced.

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