Saudi Arabia’s $6 billion aid pledge lifts Pakistan stocks

LONDON: Pakistani shares jumped 3.3 percent in early trade on Wednesday
helped by an aid pledge from Saudi Arabia that emerged from the Future
Investment Initiative in Riyadh.

Saudi Arabia pledged $3 billion in support to Pakistan and allowed for
up to $3 billion in deferred oil payments to help stave off a budget

The deal came as Pakistani Prime Minister Imran Khan attended the
opening of the Future Investment Initiative in Riyadh on Tuesday.

Earlier Khan met with King Salman and Crown Prince Mohammed bin Salman
to discuss bilateral issues. It was his second visit to the Kingdom in
just over a month.

“It was agreed Saudi Arabia will place a deposit of $3 billion for a
period of one year as balance of payment support,” Pakistan’s foreign
ministry said in a statement.

“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

During his address to the gathering of global business executives, Khan
also confirmed that Pakistan was in talks with the International
Monetary Fund (IMF) for a new bailout.

Pakistan is seeking foreign aid to help plug a massive budgetary gap
which the Pakistan prime minister has blamed on the mismanagement of the
previous administration.

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